Q2 earnings highlight stronger profit and interest income trends

TriCo Bancshares (TCBK) reported second quarter 2026 results with higher net interest income of US$93.63 million and net income of US$34.17 million compared with the same period a year earlier.

Basic earnings per share from continuing operations reached US$1.07 and diluted earnings per share reached US$1.06. The company also reported higher net income for the first six months of 2026 versus the prior year period.

TriCo Bancshares shares trade at US$58.02, with a 30 day share price return of 7.62% and a year to date share price return of 23.05%. The 1 year total shareholder return of 39.97% suggests the recent earnings update is feeding into building momentum.

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TriCo Bancshares is putting up solid profit numbers and the share price has reacted fast. The real test now is whether that stronger profile is already fully reflected in today’s valuation or still leaves some room.

Preferred P/E of 13.7x for TriCo Bancshares: Is it justified?

For TriCo Bancshares, the current P/E of 13.7x sits at the center of the valuation debate. It lines up with a share price of $58.02 and points to a market that is paying a premium relative to some benchmarks.

The P/E ratio compares the current share price with earnings per share and is a common way to gauge how much investors are paying for each dollar of profit. For a bank like TriCo Bancshares, this often reflects expectations around earnings durability, credit quality, and the stability of net interest income rather than rapid expansion.

According to recent checks, TriCo Bancshares is considered expensive when compared with the estimated fair P/E of 11.2x and also when set against the wider US Banks industry average of 11.9x. At the same time, the P/E of 13.7x is below a broader peer group average of 25x. This suggests the wider peer set trades on far richer earnings multiples while the company still carries a premium within its own industry group. If the market reassessed the stock closer to the fair P/E level, that would imply a lower earnings multiple than today.

Result: Price-to-Earnings of 13.7x (OVERVALUED)

However, TriCo Bancshares still faces risks if credit quality weakens or if funding costs squeeze net interest income and challenge current earnings and valuation assumptions.

Another view on TriCo Bancshares using cash flows

While the P/E of 13.7x makes TriCo Bancshares look expensive against some earnings benchmarks, the SWS DCF model points in the opposite direction. At a share price of US$58.02, the stock is trading about 27.3% below an estimated future cash flow value of US$79.76. That sets up a very different question about what the market might be missing.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out TriCo Bancshares for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 49 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Comfortable with how the TriCo Bancshares story is shaping up, or still on the fence? To pressure test the optimism already in the numbers, review the 3 key rewards.

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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.