TriCo Bancshares (NASDAQ:TCBK) reported fourth-quarter net income of $33.6 million, or $1.03 per diluted share.
The results represent a 15.8% increase over the $0.88 per share earned in the year-ago period, comfortably beating the analyst consensus of $1.01.
The bank also signaled high confidence in its capital position by authorizing a new share repurchase program for up to 2,000,000 shares, valued at approximately $97 million based on current prices.
The Chico-based lender’s performance was underpinned by a significant expansion in its net interest margin (NIM), which climbed 10 basis points sequentially to 4.02%.
This margin expansion was driven by a disciplined reduction in deposit costs, which fell by 10 basis points to 1.29%, even as loan yields ticked upward to 5.77%.
While total deposits saw a slight 3.4% annualized decrease from the previous quarter, the bank maintained a high-quality funding base, with non-interest-bearing deposits accounting for 31.0% of the total.
"The strong performance trajectory with which we close 2025 gives us good reason to be optimistic," said CEO Richard Smith.
The bank’s loan portfolio grew 6% on an annualized basis during the quarter, reaching $6.9 billion, fueled by broad demand across its California footprint.
With a total capital ratio of approximately 14.8% and a rising tangible book value, TriCo is positioning itself to continue its aggressive return of capital to shareholders through both the new buyback and its current $0.36 quarterly dividend.