Updated April 2025
TriCo Bancshares isn’t the kind of name that gets tossed around in everyday investing chatter, but for those of us who pay attention to stable income plays, it’s worth a serious look. Headquartered in Chico, California, TriCo is the parent company of Tri Counties Bank—a regional player offering commercial and consumer banking services throughout California.
This bank has been around since the ’70s and has grown carefully over the years, avoiding the boom-and-bust cycle that hits flashier names. With a focus on sound lending practices and controlled expansion, TriCo has become a steady operator with a reputation for reliability. And if you’re looking at it through a dividend lens, there’s plenty to like.
Recent Events
TriCo recently posted solid earnings, wrapping up 2024 with a net income of nearly $115 million and an EPS of $3.46. That’s an 11.3% bump compared to last year, showing some strength in its core banking business despite ongoing interest rate uncertainties.
Revenue ticked up too—about 2.1% year-over-year to just under $390 million. Sure, that’s not jaw-dropping growth, but in this interest rate climate, it speaks to the bank’s ability to manage margin compression and still grind out gains.
Profitability metrics back that up. Return on assets is 1.17%, and return on equity is sitting at 9.65%. These aren’t numbers that’ll get you in the front pages, but they’re steady—and for income-focused investors, steady is the name of the game. Also worth noting: the bank has a low beta of 0.56, which tells you it tends to move less than the broader market. That’s a plus if you prefer a more stable ride.
Key Dividend Metrics 📊
📈 Dividend Yield: 3.33%
💵 Annual Dividend: $1.32 per share
🧱 Payout Ratio: 38.15%
📅 Last Dividend Paid: March 21, 2025
🚪 Ex-Dividend Date: March 7, 2025
📉 5-Year Average Yield: 2.74%
🎯 Dividend Growth History: Consistent, modest increases
🔁 Last Split: 2-for-1 in May 2004
Dividend Overview
The current yield of 3.33% jumps out right away, especially when you stack it against TriCo’s five-year average of 2.74%. That gap shows there’s some upside here, particularly for those locking in shares at current prices.
What’s more, the dividend is comfortably supported by earnings. The payout ratio sits at 38.15%, leaving plenty of room for TriCo to maintain or even bump the dividend without stretching the balance sheet. That kind of breathing room matters, especially in a world where many banks are trimming dividends or freezing them.
This is a bank that pays like clockwork. March 21 was the latest dividend check, and based on the schedule, the next one won’t be far off. The consistency of payments—and the predictability of ex-dividend dates—makes this a stock you can plan around.
And let’s not overlook the share price behavior. It’s been relatively stable, with a 52-week range between $31.73 and $51.06. Currently trading in the high $30s, it’s hovering near its book value of $37.03, and the price-to-book ratio is around 1.07. That tells us the market isn’t overpaying for growth, but it’s also not pricing in any near-term trouble.
Dividend Growth and Safety
TriCo isn’t flashy with dividend hikes. It’s the kind of stock where you’ll see small, deliberate increases—not huge jumps. And frankly, that suits a lot of income-focused investors just fine. The goal here is dependability, not chasing yield highs that can’t be sustained.
From a safety standpoint, this dividend is on solid footing. Here’s why:
- The earnings base is healthy, and even modest EPS growth like this past year’s 11% gives management some flexibility to raise the dividend while keeping reserves intact.
- The balance sheet shows about $216 million in debt offset by over $85 million in cash. Leverage is present, but it’s manageable—and certainly not alarming for a regional bank of this size.
- Return metrics like ROE and ROA aren’t high-fliers, but they are consistent. That kind of earnings predictability gives you more confidence in the ongoing ability to fund dividends.
- Insider ownership is just over 8%, and institutions hold about two-thirds of the float. That level of institutional interest suggests analysts and fund managers see value in the stock’s risk/reward profile.
If you’ve been around dividend investing long enough, you know the best names aren’t always the loudest ones. TriCo Bancshares might not be making headlines, but it’s making payouts—reliably, sustainably, and in a way that respects shareholder capital. And in this market, that kind of approach feels more like a feature than a flaw.
Cash Flow Statement
TriCo Bancshares generated $109.7 million in operating cash flow over the trailing twelve months, a decline from $138.9 million the prior year and $162.9 million in 2022. While still solid, this trend suggests some compression in core banking operations, likely tied to margin pressures in a shifting rate environment. Even so, free cash flow held up well at $105.2 million, giving the company enough flexibility to cover dividends and maintain capital discipline without overreliance on debt.
On the investing side, the bank saw a significant inflow of $285 million, a sharp turnaround from the heavy outflows seen in 2021 and 2022. That’s likely tied to adjustments in its securities portfolio or sales of maturing assets. Financing activities showed outflows of $348.5 million, more than doubling the previous year’s figure, reflecting debt paydowns and possibly deposit outflows. The company also repurchased $15.5 million worth of stock, signaling a measured return of capital. Despite the large financing outflows, TriCo ended the period with a cash position of nearly $145 million—its highest in recent years.
Analyst Ratings
📉 TriCo Bancshares has recently experienced a shift in analyst sentiment. Keefe, Bruyette & Woods (KBW) revised their outlook, lowering the price target from $53.00 to $50.00 while keeping the stock at a “Market Perform” rating. This adjustment came even after TriCo posted stronger-than-expected results at the end of 2024. The stock outpaced the broader market by about 300 basis points, and its net interest margin actually expanded by 5 basis points—an upside surprise compared to KBW’s projected 4 basis point contraction.
💼 The positive performance was driven by healthy loan growth, disciplined expense control, and steady credit quality. These factors gave investors and analysts reason to remain cautiously optimistic. However, the lowered price target reflects a more balanced view moving forward, as expectations for rising operating costs—partly due to increased business activity—begin to factor into future projections.
🎯 As of the latest consensus, analysts covering TCBK maintain a “Moderate Buy” stance, with an average price target of $51.67. This suggests a modest upside from current levels and indicates that while the stock may not be a high-flier, it’s viewed as a reliable performer in the regional banking space.
Chart Analysis
Price Trends and Moving Averages
Over the past year, the price of TCBK saw a steady climb from the low-$30s in spring, peaking above $47 in late summer and early fall. That strong run was supported by the 50-day moving average, which stayed well above the 200-day moving average for most of the uptrend. However, around February, the picture began to shift. The 50-day line has now curved downward and recently crossed below the 200-day line—a technical pattern often associated with waning momentum.
While not a reason for panic, this crossover does suggest the prior bullish trend has cooled off. The current price is trading below both moving averages, and the slope of both is flattening, pointing toward a period of consolidation or a possible retracement if no fresh catalyst appears.
Volume and Momentum
Volume has been fairly average, with occasional spikes, most notably during the July-to-September stretch when the stock was on its way up. More recently, however, the volume bars have been shrinking, suggesting a lack of strong conviction on either the buying or selling side.
Looking at the RSI in the lower panel, the recent dips toward the oversold range in March hinted at potential exhaustion in selling pressure. Since then, RSI has crawled back up, currently sitting near neutral territory. That recovery shows a bit of resilience, but there isn’t yet a strong push upward to confirm a reversal.
General Tone
Overall, the chart tells the story of a stock that rallied hard through 2023, got a bit overheated, and is now working through a natural pullback. The recent technical signals are mixed, leaning slightly cautious in the short term. However, the longer-term structure still reflects a company that built a strong base and could regain its footing once broader conditions stabilize.
Earning Report Summary
Steady Finish to the Year
TriCo Bancshares wrapped up the final quarter of 2024 with a net income of $29 million, or $0.88 per diluted share. That’s right in line with what they posted in the previous quarter, which shows a level of stability that’s becoming something of a theme for the bank. In a year full of rate shifts and market noise, holding steady is no small feat.
One of the more encouraging signs was a slight improvement in the net interest margin, which came in at 3.76%—up from 3.71% last quarter. This happened even with three rate cuts by the Fed totaling 100 basis points since September. So the fact that margins didn’t slip is a sign TriCo has done a solid job managing its asset and liability mix.
Lending and Deposits on the Rise
Loan growth was another bright spot. The bank added just over $84 million in new loans during the quarter, which works out to an annualized growth rate of about 5%. That kind of expansion shows the bank is still finding demand in its markets and is staying active on the lending front.
Deposits were up too, increasing by roughly $96 million compared to the previous quarter. That’s not just a number—it reflects customer confidence and deeper relationships with account holders.
Expense Management and Asset Quality
On the noninterest side, the bank brought in $16.3 million in income, while expenses landed at $60.6 million. Neither figure is out of line with expectations, and the efficiency ratio settled at 58.3%. That tells us the bank is still keeping a close eye on costs and managing operations with discipline.
Asset quality continues to be a standout. Non-performing assets made up just 0.15% of total assets, which is low by any standard and suggests the loan book remains clean.
All in all, TriCo’s fourth quarter didn’t have any fireworks—but that’s part of the appeal. It was a calm, competent finish to the year, built on strong fundamentals, stable earnings, and a pretty consistent approach to managing through uncertainty.
Management Team
TriCo Bancshares is led by a steady and experienced leadership group that’s been with the company through multiple cycles. At the top is Richard P. Smith, who has held the roles of Chairman, President, and CEO since 1999. That kind of continuity matters—it brings consistency to strategic planning and a deep understanding of how to operate through both calm and turbulent times.
The executive bench is rounded out by Daniel K. Bailey as Chief Banking Officer, Craig B. Carney as Chief Credit Officer, Peter G. Wiese managing the financials as CFO, and John S. Fleshood as COO. Each of them plays a key role in balancing risk, growth, and operational focus. Together, they’ve helped guide the bank through organic growth and acquisitions while maintaining a disciplined approach to lending.
TriCo’s Board of Directors brings a wide mix of experience from sectors like agriculture, tech, and academia. Individuals like Michael Koehnen from the ag industry and Kimberley Vogel, who’s spent time in finance and teaching at Stanford, offer perspectives that go beyond banking. It’s a team that seems intentionally built to provide broad insight while keeping decisions grounded in sound business practices.
Valuation and Stock Performance
TCBK closed recently at $39.74, which puts it somewhere in the middle of its 52-week range between $31.73 and $51.06. The stock has seen a bit of volatility but nothing extreme. It’s held its ground through macro shifts and sector headwinds, suggesting a base of support that doesn’t easily shake.
From a valuation angle, the stock trades at a trailing P/E of 11.47 and a forward P/E of 12.12. Those are fair numbers—neither too cheap nor too rich. They reflect modest expectations but don’t price in significant downside either. Its price-to-book ratio sits at 1.07, which is close to book value and may appeal to investors looking for undervalued financials with real assets behind them.
Volatility is on the lower side with a beta of 0.56. That means TCBK doesn’t swing as hard as the broader market—something long-term investors often appreciate when looking to anchor a portfolio with less noise.
Risks and Considerations
As solid as TriCo has been, no bank operates without risk. Interest rates are a major factor. They influence everything from deposit costs to loan profitability, and sudden shifts—especially when unexpected—can throw off margin forecasts in a hurry.
Economic slowdowns are another concern. When the broader economy pulls back, banks often feel it first through rising delinquencies. TriCo has kept credit quality high so far, but any sustained downturn could test the resilience of that loan book.
The tech side of banking carries its own kind of risk. Cybersecurity isn’t just a buzzword anymore—it’s a core part of operational safety. TriCo has frameworks in place to manage digital threats, but this is an arms race where vigilance never stops. There’s also the compliance burden. Banking is heavily regulated, and any misstep—intentional or not—can be costly both in fines and reputation.
The Risk Committee is in place to handle these challenges, and leadership seems to take that role seriously. Still, these factors are part of the landscape and should be weighed by anyone looking to hold the stock long term.
Final Thoughts
TriCo Bancshares offers a case study in consistency. The leadership is experienced, the culture leans conservative, and the approach to growth has been methodical. That’s not always flashy—but it tends to work when the goal is building something durable.
The stock’s valuation seems balanced, offering neither deep discount nor obvious overvaluation. And in a market where volatility can take center stage, TCBK’s lower beta adds a layer of calm that some portfolios might need.
That said, it’s not a risk-free story. Like every bank, it’s tied to the economic and interest rate cycles, and it faces the same modern challenges as its peers—digital security, competitive pressure, and regulatory oversight.
But for those who value steady leadership, clean financials, and measured growth, TriCo stands out as a name worth watching. It may not make waves, but it’s the kind of institution that often delivers quietly, quarter after quarter.