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TRICO BANCSHARES / (TCBK)·Q4 2024 Earnings Summary

Executive Summary

  • EPS was $0.88, flat versus Q3 ($0.88) and up 12.8% year over year; Net income was $29.0M as NIM expanded to 3.76% (+5 bps q/q) on lower funding costs and reduced borrowings .
  • Net interest income rose to $84.1M (+$1.5M q/q) while average deposit costs fell to 1.46% (-6 bps q/q); deposits grew $50.5M and loans grew $84.6M on stronger originations as rates dipped .
  • Provision for credit losses increased to $1.7M (from $0.2M in Q3) amid loan growth; NPLs increased to $44.1M and NPAs to $46.9M (0.48% of assets), keeping ACL stable at 1.85% of loans .
  • Company press release claims a quarterly and annual estimates beat; formal Street consensus via S&P Global was unavailable at the time of this analysis due to API limits. Dividend of $0.33 per share was maintained .

What Went Well and What Went Wrong

What Went Well

  • Net interest margin and net interest income expanded for the second consecutive quarter despite three Fed rate cuts since mid-September, driven by lower funding costs and redeployment of cash into higher-yielding assets .
  • Average cost of total deposits declined 6 bps to 1.46% q/q, while deposits grew $50.5M and noninterest-bearing deposits held at 31.8% of total, supporting funding stability .
  • CEO tone confident on longer-term opportunity: “We remain focused on our path forward… changes will likely create significant opportunity for us to further differentiate and elevate our performance” (Rick Smith) .

What Went Wrong

  • Provision for credit losses increased to $1.7M versus $0.2M in Q3; NPLs rose to $44.1M and NPAs to $46.9M (0.48% of assets), reflecting normalization in credit metrics .
  • Average loan yield fell 5 bps q/q (5.78% vs 5.83%) as the rate environment eased; average yield on earning assets decreased 4 bps q/q .
  • Accumulated other comprehensive loss increased by $35.5M during the quarter, reducing book value per share to $37.03 from $37.55; tangible book value per share fell to $27.60 (non-GAAP) .

Financial Results

Quarter-over-Quarter Trajectory

Metric (Units)Q2 2024Q3 2024Q4 2024
Net Interest Income ($USD Thousands)81,997 82,611 84,090
Noninterest Income ($USD Thousands)15,866 16,495 16,275
Provision for Credit Losses ($USD Thousands)405 220 1,702
Noninterest Expense ($USD Thousands)58,339 59,487 59,775
Net Income ($USD Thousands)29,034 29,051 29,034
Diluted EPS ($USD)0.87 0.88 0.88
NIM (FTE, %)3.68% 3.71% 3.76%
Efficiency Ratio (%)59.61% 60.02% 59.56%

Year-over-Year Comparison

Metric (Units)Q4 2023Q4 2024
Net Interest Income ($USD Thousands)86,617 84,090
Noninterest Income ($USD Thousands)16,040 16,275
Provision for Credit Losses ($USD Thousands)5,990 1,702
Noninterest Expense ($USD Thousands)60,267 59,775
Net Income ($USD Thousands)26,075 29,034
Diluted EPS ($USD)0.78 0.88
NIM (FTE, %)3.81% 3.76%
Efficiency Ratio (%)58.71% 59.56%

Loan Composition by Category (Ending Balance)

Category ($USD Thousands)Q2 2024Q3 2024Q4 2024
CRE – Non-Owner Occupied4,443,768 4,487,524 4,577,632
Consumer1,303,757 1,283,963 1,281,059
Commercial & Industrial549,780 484,763 471,271
Construction348,981 276,095 279,933
Agriculture Production145,159 144,123 151,822
Leases9,250 7,423 6,806
Total Loans, Gross6,800,695 6,683,891 6,768,523

KPIs and Credit Metrics

KPIQ2 2024Q3 2024Q4 2024
Loan-to-Deposit Ratio (%)83.76 83.16 83.69
Avg Cost of Total Deposits (%)1.45 1.52 1.46
Avg Yield on Loans (%)5.82 5.83 5.78
Avg Yield on Earning Assets (%)5.24 5.26 5.22
Nonperforming Loans ($USD Thousands)32,774 41,636 44,096
Nonperforming Assets ($USD Thousands)35,267 44,400 46,882
ACL / Gross Loans (%)1.83 1.85 1.85
Efficiency Ratio (%)59.61 60.02 59.56

Versus Estimates

  • Company press release asserts TCBK “beats quarterly and annual earnings estimates”; formal SPGI consensus was unavailable at the time due to request limit. We therefore cannot quantify the magnitude of beat/miss in tables .
  • Note: S&P Global consensus data unavailable at time of retrieval.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per Share ($)Q4 2024$0.33 (Q3 2024) $0.33 declared Nov 21, 2024; payable Dec 20, 2024 Maintained
NII/NIM Outlook2H 2024 into 2025“NIM poised to gain momentum” (Q2 CFO) “NIM and NII expanded for second consecutive quarter… benefits realized via lower funding costs and redeployment” (Q4 CFO) Qualitative positive
Effective Tax RateQ3 vs Q4 202426.3% (Q3) 25.3% (Q4) Lower

No formal numeric revenue/expense/margin guidance ranges were provided in the materials reviewed .

Earnings Call Themes & Trends

Note: No Q4 earnings call transcript was available in the document catalog; themes below reflect management’s quarterly press releases.

TopicPrevious Mentions (Q2 & Q3)Current Period (Q4)Trend
Rate environment & NIMQ2: NIM flat; poised to gain momentum in 2H24 . Q3: Less yield curve inversion likely benefits longer-term revenue/EPS .NIM rose to 3.76% (+5 bps); NII up, aided by lower funding costs after three Fed cuts (100 bps total) .Improving NIM trajectory
Deposit mix & costsQ2: Avg cost of deposits up 24 bps; managing via pricing/mix . Q3: Cost 1.52% (+7 bps); active pricing/mix .Avg cost fell to 1.46% (-6 bps); NIB deposits 31.8% of average deposits .Cost relief, stable NIB %
Liquidity & borrowingsQ2: Primary liquidity $4.22B; borrowings reduced $145M q/q . Q3: Liquidity $4.10B; borrowings up q/q but cash rose .Primary liquidity $4.12B; other borrowings down to $89.6M from $266.8M .Strong liquidity, lower borrowings
Loan growth & originationsQ2: Loans -$58M q/q; originations $310M, payoffs $369M . Q3: Loans -$59M q/q; originations $352M, payoffs $419M .Loans +$85M q/q; originations $488M, payoffs $409M; production coupons down with rate dip .Growth resuming
Credit qualityQ2: Classified loans up; NPAs 0.36% . Q3: NPAs 0.45%; NPLs +$8.9M q/q .NPAs 0.48%; NPLs $44.1M; ACL at 1.85% .Normalizing, elevated vs mid-2024
Tech/data investmentQ2/Q3: Ongoing investments in data management/security increased DP&SW expense .Continued investment noted; DP&SW $5.49M (+4.5% q/q) .Ongoing spend
>$10B asset readinessQ2/Q3: Strategic talent acquisitions to prepare beyond $10B .Continued focus on growth objectives beyond $10B .Preparing for scale

Management Commentary

  • CEO: “We remain focused on our path forward… changes will likely create significant opportunity for us to further differentiate and elevate our performance” (Rick Smith) .
  • CFO: “Both net interest margin and net interest income expanded for the second consecutive quarter… realized primarily through a reduction in funding costs and the deployment of balance sheet cash into higher yielding earning assets” (Peter Wiese) .
  • CFO (Q3 context): “Reshaping of the yield curve with less inversion will likely provide longer term benefits to revenue and earnings per share growth” .
  • CFO (Q2 context): “Our net interest margin was unchanged… a positive indicator that net interest income is poised to gain momentum in the second half of 2024” .

Q&A Highlights

No Q4 earnings call transcript was available in the document catalog for review; Q&A themes and clarifications could not be analyzed [ListDocuments: none found for earnings-call-transcript].

Estimates Context

  • Company press release indicates a quarterly and annual estimates beat .
  • S&P Global consensus estimates for Q4 2024 were unavailable at time of retrieval due to request limit; as a result, quantitative beat/miss versus Street cannot be shown. Values retrieved from S&P Global were unavailable.
  • Implications: With NIM expanding and deposit costs declining, Street models may adjust net interest income and funding cost trajectories; credit costs rose modestly with loan growth, and NPAs/NPLs ticked up, warranting conservative credit cost assumptions .

Key Takeaways for Investors

  • Margin expansion continues: NIM rose to 3.76% (+5 bps q/q) and NII increased $1.5M; catalysts were lower funding costs and reduced borrowings .
  • Funding stabilizing: Avg deposit cost fell to 1.46% and NIB deposits held ~32%; deposits grew $50.5M, supporting earnings trajectory .
  • Loan growth resumed: Balances +$84.6M q/q (5.1% annualized), with originations $487.9M amid lower benchmark rates—supportive for 2025 NII .
  • Credit normalization: Provision increased to $1.7M; NPLs $44.1M and NPAs 0.48%—monitor classified trends and sector exposures while noting ACL steady at 1.85% .
  • Capital and liquidity strong: Primary liquidity $4.12B; risk-based capital ratios healthy (Total RBC 15.7%, Tier 1 14.0%) .
  • Book value pressure from AOCI: AOCI worsened by $35.5M; BVPS declined to $37.03; TBVPS $27.60—rate sensitivity in AFS portfolio remains a watch item .
  • Dividend maintained at $0.33; continued shareholder return while preparing for >$10B scale .

Non-GAAP considerations: Management highlights FTE NIM and NIM excluding acquired loan accretion (3.71% in Q4 vs 3.66% in Q3), useful for underlying margin trend analysis .