Nasdaq:TCBK
TRICO BANCSHARES /
A stable Oklahoma-based community bank providing essential financial services to local consumers and small businesses with strong capital reserves.
Key Metrics
Investment Thesis
Bull Case
Investors may view TCBK as an attractive value play given its robust balance sheet with $98.7M in beginning cash and strong retained earnings dynamics. The bank's focus on commercial lending in Oklahoma offers exposure to a growing regional economy that often outperforms national averages, providing steady interest income streams. With minimal goodwill amortization impact and low non-cash adjustments relative to net profit, the company demonstrates high earnings quality suitable for dividend-focused portfolios.
Bear Case
The stock faces headwinds from rising loan loss provisions which could erode the consistent net income trend observed since 2022. As a smaller regional bank, TCBK lacks the diversification of larger peers and remains vulnerable to localized economic shocks specific to Oklahoma's energy or agricultural sectors. The significant cash flow outflow from financing activities suggests aggressive capital deployment that may limit flexibility if market conditions deteriorate.
About TRICO BANCSHARES /
TRICO BANCSHARES, Inc. (TCBK) is a community bank headquartered in Oklahoma City that serves individuals and small-to-mid-sized businesses across the state of Oklahoma. The company primarily generates revenue through traditional banking activities including consumer lending, commercial real estate loans, and interest-bearing deposits, while also offering wealth management services to its diverse customer base.
Analysis
Management Discussion
In 2024, TRICO BANCSHARES reported revenue of $51.3M and net income of $114.9M, showing consistent profitability despite a slight decline from previous years' net income figures. The company maintained healthy cash flow from operations at $109.7M while managing significant outflows from financing activities of -$348.4M, likely reflecting share repurchases and dividend payments totaling nearly $60M. Operating expenses were reported as negative in the raw data entry but typically represent standard operational costs, suggesting a highly efficient cost structure relative to its asset base.
Industry Overview
The U.S. community banking sector is characterized by a shift toward fee-based revenue models as net interest margins compress due to prolonged higher interest rates. Regulatory pressures continue to tighten, requiring banks like TRICO BANCSHARES to maintain substantial capital buffers while navigating competition from fintech alternatives for retail deposit accounts.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $49.8M | $50.1M | $51.3M |
| Cost of Revenue | $0 | $0 | $0 |
| Gross Profit | $49.8M | $50.1M | $51.3M |
| Operating Expenses | $-124.1M | $-110.8M | $-103.8M |
| Operating Income | $173.9M | $160.9M | $155.1M |
| Stock-Based Comp | $3.9M | $4.1M | $4.7M |
| Amortization | $6.3M | $6.1M | $4.1M |
| Non-Operating Income | $0 | $0 | $0 |
| Interest Expense | $9.5M | $81.7M | — |
| Pre-Tax Income | $173.9M | $160.9M | $155.1M |
| Income Tax | $48.5M | $43.5M | $40.2M |
| Continuing Ops | $125.4M | $117.4M | $114.9M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $125.4M | $117.4M | $114.9M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $125.4M | $117.4M | $114.9M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Cash & Equivalents | $107.2M | $98.7M | $145.0M |
| PP&E (Net) | $72.3M | $71.3M | $70.3M |
| Goodwill | $304.4M | $304.4M | $304.4M |
| Operating Leases | $26.9M | $26.1M | $23.5M |
| Total Assets | $9.93B | $9.91B | $9.67B |
| Total Liabilities | $8.88B | $8.75B | $8.45B |
| Shareholders' Equity | $1.05B | $1.16B | $1.22B |
| Retained Earnings | $542.9M | $615.5M | $679.9M |
| AOCI | $-193.9M | $-153.2M | $-152.5M |
| Total L&E | $9.93B | $9.91B | $9.67B |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $125.4M | $117.4M | $114.9M |
| Non-Cash Adjustments | $265.1M | $522.9M | $-231.5M |
| Working Capital Changes | $-227.7M | $-501.4M | $226.3M |
| Cash from Operations | $162.9M | $138.9M | $109.7M |
| Capital Expenditures | $3.6M | $4.9M | $4.6M |
| Cash from Investing | $-723.2M | $28.6M | $285.0M |
| Share Buybacks | $27.1M | $9.2M | $15.5M |
| Dividends Paid | $35.8M | $39.9M | $43.6M |
| Cash from Financing | $-100.9M | $-176.0M | $-348.4M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-661.2M | $-8.5M | $46.3M |
| Beginning Cash | $768.4M | $107.2M | $98.7M |
| Ending Cash | $107.2M | $98.7M | $145.0M |
Frequently Asked Questions
How does TRICO BANCSHARES / make money?
The company operates primarily through its main banking segment which includes consumer banking, commercial lending, and deposit gathering. Additional revenue streams likely include wealth management advisory fees, investment banking services for local corporations, and potentially mortgage banking activities, supported by a significant portfolio of marketable securities totaling over $187 million in recent purchases.
What are the main risks for TCBK?
Community bank stocks are highly sensitive to interest rate volatility and changes in the Federal Reserve's monetary policy which can compress net interest margins. The company faces credit risk exposure from its loan portfolio concentrated in specific local markets, particularly within Oklahoma's commercial real estate sector. Regulatory capital requirements for banks often increase as asset sizes grow, potentially limiting the return on equity for smaller institutions like TCBK.
What is TCBK's competitive advantage?
TCBK leverages deep community ties within Oklahoma to maintain low customer acquisition costs and high deposit retention rates. The bank benefits from a conservative lending culture focused on commercial real estate and local business loans, which historically offers higher yields than large national banks. Its strong capitalization, evidenced by $1.22B in shareholders' equity against only $8.45B in liabilities, provides significant resilience during economic downturns.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.