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TriCo Q1 2025 Earnings Report
TriCo Bancshares reported first quarter 2025 net income of $26.4 million, diluted EPS of $0.80.
Key Takeaways
TriCo Bancshares reported a net income of $26.4 million and diluted EPS of $0.80 for the first quarter of 2025. The company's core business activities of adding customers, growing deposits, and originating loans were solid despite a volatile economic environment, and they achieved an 'Outstanding' rating in their recent Community Reinvestment Act examination.
Net income for Q1 2025 was $26.4 million, a decrease from $29.0 million in the trailing quarter.
Diluted EPS was $0.80, down from $0.88 in the trailing quarter.
Loan balances increased by $52.3 million (3.1% annualized) from the trailing quarter.
Deposit balances increased by $117.8 million (5.8% annualized) from the trailing quarter.
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CapyFin.comOther Noninterest Income Revenue
CapyFin.com Forward Guidance
Management expects continued incremental increases in earning asset yields and incremental reductions in funding costs. They intend to primarily utilize cash flows from the investment security portfolio and organic deposit growth to support loan growth, with excess liquidity used for investment security purchases to support net interest income growth and net interest margin expansion.
Positive Outlook
- Continued incremental increases in earning asset yields are expected.
- Incremental reductions in funding costs are anticipated.
- Cash flows from investment security portfolio will support loan growth.
- Organic deposit growth will support loan growth.
- Excess liquidity will be utilized for purchases of investment securities to support net interest income growth and net interest margin expansion.
Challenges Ahead
- Interest rates across the yield curve fluctuated significantly during the quarter.
- Geopolitical policy risks remain elevated, potentially leading to negative effects on domestic economic outcomes.
- Uncertainties related to the nature, duration, and potential economic impact of proposed tariffs present challenges for credit risk improvement.
- Management believes certain credit weaknesses are present in the overall economy.
- Continued migration of customer funds to interest-bearing products may impact noninterest-bearing deposit ratios.