Overview

• Regional bank's preliminary Q2 net income and EPS rose yr/yr on higher loan growth

• Net interest income increased 8.2% yr/yr, driven by higher lending income

• Deposit balances declined slightly, while merger with First Hawaiian Bank remains a focus

Outlook

• Company expects continued loan growth, supported by economic expansion through 2026

• Management expects share repurchases to be limited due to pending merger with First Hawaiian Bank

Result Drivers

• LOAN GROWTH - Loan balances increased $242.9 mln from the prior qtr and $352.1 mln from a yr ago, supporting higher net interest income

• NET INTEREST MARGIN - Net interest income and margin expanded due to higher yields on earning assets and continued loan repricing, per CFO Peter Wiese

• CREDIT LOSS PROVISION - Lower provision for credit losses, reflecting stable credit quality and economic conditions, contributed to results

Company press release: ID:nBwbXJ3LZa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 EPS		$1.06
Q2 Net Income		$34.17 mln
Q2 Net Interest Income		$93.63 mln
Q2 Credit Loss Provision		-$2.66 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Trico Bancshares is $62.00, about 4.2% above its July 22 closing price of $59.49

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• July 22 - Five Star Bancorp Q2 net income rises on loan growth

• July 21 - Southern First Bancshares' Q2 profit rises on loan growth and margin expansion

• July 21 - Capital One second-quarter profit rises on higher interest income

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