TriCo Bancshares reported third quarter 2026 net income of $38.0 million, or $1.18 per diluted share, marking an 11.1 percent increase from the prior quarter. The Chico, California-based company also declared a quarterly cash dividend of $0.36 per share on October 20, 2026.
The earnings release, dated October 22, 2026, details that net interest income on a fully taxable equivalent basis rose to $96.8 million, up 3.1 percent from the trailing quarter. Net interest margin expanded by 5 basis points to 4.16 percent. Loan balances grew by $99.1 million, or 5.4 percent on an annualized basis, compared to the previous quarter, while deposit balances increased by $74.6 million, or 3.6 percent on an annualized basis.
Rick Smith, Chairman and CEO of TriCo Bancshares, attributed the performance to the bank's focus on serving customers and delivering growth as it prepares for a merger with First Hawaiian Bank. Smith stated that the results demonstrate the value Tri Counties Bank will bring to the combined institution. He noted the company's 51-year history and expressed gratitude to customers and shareholders for their support.
Financial metrics for the quarter showed a return on average assets of 1.50 percent and a return on average equity of 11.08 percent. The efficiency ratio stood at 56.96 percent, inclusive of $3.8 million in merger-related expenses, compared to $0.9 million in the trailing quarter. The benefit from credit losses totaled $1.9 million, reversing a provision of $2.7 million recorded in the prior quarter.
The allowance for credit losses to total loans was 1.73 percent as of September 30, 2026, down from 1.78 percent at the end of the trailing quarter. Non-performing assets to total assets increased to 0.79 percent from 0.76 percent in June 2026. Total loans outstanding reached $7.4 billion, an increase of $403.4 million from the same period in the prior year.
The company relied on its own deposit base to manage liquidity needs in both 2026 and 2025 rather than using brokered funds. Total shareholders' equity fell by $15.1 million during the quarter because net income was outweighed by a $42.6 million rise in accumulated other comprehensive losses and $11.5 million in cash dividends paid on common stock.
The dividend is payable on November 27, 2026, to holders of record as of November 16, 2026. The financial results reported in the document are preliminary and unaudited, with final results to be reported on Form 10-Q for the period ended September 30, 2026.