TriCo Bancshares (TCBK) opened Q2 2026 with total revenue of US$109.2 million and basic EPS of US$1.07, against a trailing twelve month profile of US$426.1 million in revenue and EPS of US$4.20 that has been supported by 21% earnings growth and a net profit margin of 31.8% over the past year. The company has seen quarterly revenue move from US$98.9 million in Q2 2025 to US$109.2 million in the latest quarter, while quarterly EPS moved from US$0.84 to US$1.07 over the same period. This gives investors a results set where earnings and margins are front and center rather than outsized top line expansion.
See our full analysis for TriCo Bancshares.With the headline numbers on the table, the next step is to see how TriCo Bancshares' improving earnings profile lines up with the most widely held narratives around growth, quality and risk.
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21% earnings growth backed by higher 31.8% margin
- Over the last 12 months, TriCo Bancshares' earnings grew 21% while net profit margin moved from 28.6% to 31.8%, and trailing revenue growth sat at about 5.8% per year against a cited 12.7% for the broader US market.
- Bulls point to this margin story as a strength, and the data does heavily support that view:
- Net income on a trailing basis reached US$135.5 million on US$426.1 million of revenue, which is consistent with the 31.8% margin figure and suggests the recent EPS run rate around US$1.07 per quarter has been backed by profitability, not just accounting noise.
- What stands out though is that revenue growth of about 5.8% per year is slower than the 12.7% figure cited for the broader US market, so the bullish case rests more on margin quality than on rapid top line expansion.
Cost and yield metrics frame bank efficiency
- Within the last reported quarters, TriCo Bancshares showed a net interest margin of 4.07% and a cost to income ratio of 54.55% in Q1 2026, compared with a cost to income ratio of 59% and net interest margin of 3.88% in Q2 2025.
- Supporters of the bullish view often argue that this kind of profile signals an efficient, traditional bank model, and the numbers partly back that up while also adding nuance:
- Across the provided periods, cost to income ratios ran between roughly 54% and 60%, which keeps operating costs at a little over half of income and gives earnings room to benefit when revenue increases. However, it also leaves limited evidence here of step change improvement that might fully offset slower revenue growth.
- The net interest margin readings in the 3.7% to just over 4% range show that the core lending business is earning a spread on loans of around US$7.0b. Any bullish claim that this alone can drive fast growth needs to be weighed against the modest revenue growth figures in the trailing and forecast data.
Valuation gap and dividend set expectations
- On the valuation side, TriCo Bancshares trades on a trailing P/E of 13.7x versus 26.9x for peers and 12.1x for the wider US Banks industry, while a DCF fair value of about US$80.34 compares with a share price of US$58.12 and the stock offers a trailing dividend yield of 2.48%.
- Critics with a more bearish tilt argue that slower expected growth justifies this pricing, and the figures give that view some backing while also showing why others see value:
- Forecast earnings growth of 1.2% per year and trailing revenue growth around 5.8% per year are both cited as slower than broader US market averages. This lines up with the bearish point that this is not a high growth story and may warrant a lower multiple than faster growing sectors.
- At the same time, the P/E discount to peers and the gap between the US$58.12 share price and the DCF fair value of US$80.34, alongside a 2.48% yield, are the figures that valuation focused investors use to counter that bearish stance by pointing to what they see as a margin of safety.
Next Steps
Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on TriCo Bancshares's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.
With all of this in mind, does the current picture around TriCo Bancshares feel cautious or constructive to you? If you want to move quickly from impressions to evidence, walk through the underlying data points yourself and weigh up the 3 key rewards
See What Else Is Out There
TriCo Bancshares pairs solid margins with relatively modest revenue and earnings growth figures, which may not suit investors who want higher growth potential.
If that slower profile leaves you wanting more upside, widen your search and check companies in the screener containing 20 high quality undiscovered gems that may offer stronger growth setups.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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