TriCo Bancshares Announces Increase in Quarterly Cash Dividend

Rhea-AI Summary

TriCo Bancshares (NASDAQ: TCBK) declares a quarterly cash dividend of $0.33 per share on its common stock, marking a 10% increase over the previous quarter. The company has a history of consistent dividend payments since 1989, showcasing its strength and commitment to shareholder value.

Insights

Financial Analyst

The announcement of TriCo Bancshares' dividend increase is a positive signal to shareholders and potential investors, indicating a robust financial position and a commitment to returning value. A 10% increase over the previous quarter suggests confidence in the company's earnings stability and future cash flows. Historically, consistent dividend payments have been associated with mature, profitable companies with less volatile stock prices. Investors typically view such companies as lower risk, which could potentially lead to a more favorable valuation in the market.

However, it's crucial to consider the payout ratio—the proportion of earnings paid out as dividends—to assess sustainability. If the ratio is too high, it may indicate that the company is not reinvesting enough back into its operations, which could hinder long-term growth. Conversely, a moderate payout ratio can signify a balance between rewarding shareholders and funding future expansion or debt reduction.

Market Research Analyst

TriCo Bancshares' continuous dividend payments since 1989 underscore its market positioning as a reliable financial institution. The announcement may also reflect the company's competitive stance within the regional banking sector, where customer service and community presence play a significant role. The bank's comprehensive range of services, including its affiliation with Raymond James Financial Services for brokerage services, enhances its value proposition and could attract a broader customer base.

It's also noteworthy that TriCo Bancshares operates in a sector where customer trust and brand loyalty are paramount. The bank's ability to maintain consistent dividends could be interpreted as a testament to its operational efficiency and prudent financial management, factors that can contribute to customer retention and acquisition.

Economist

From an economic perspective, steady dividend payments by TriCo Bancshares can be seen as an indicator of economic stability within the regions it serves. As a regional bank, its performance is closely tied to the economic health of Northern and Central California. The bank's dividend policy might reflect broader economic trends, such as employment rates, business growth and consumer spending in these areas.

Moreover, the bank's dividend increase could be a response to the current interest rate environment. In a rising interest rate scenario, banks generally benefit from wider net interest margins, which could translate into higher profitability and, subsequently, higher dividends. Investors should consider macroeconomic factors, such as monetary policy and inflation rates, as they can significantly impact the banking industry's performance.

CHICO, Calif.--(BUSINESS WIRE)-- The Board of Directors of TriCo Bancshares (NASDAQ: TCBK) (the “Company”), parent company of Tri Counties Bank, declared a quarterly cash dividend of $0.33 (thirty-three cents) per share on its common stock, no par value on February 22, 2024. The dividend is payable on March 22, 2024, to holders of record on March 8, 2024. President and CEO, Richard Smith noted; "Not only does this dividend reflect an increase of 10% over the prior quarter, since 1989 the Company has consistently paid a quarterly cash dividend with this representing our 138th consecutive quarterly payment, which is reflective of the Company's strength, stability and our commitment to building shareholder value for nearly 50 years."

Established in 1975, Tri Counties Bank is a wholly-owned subsidiary of TriCo Bancshares (NASDAQ: TCBK) headquartered in Chico, California, providing a unique brand of customer Service with Solutions available in traditional stand-alone and in-store bank branches in communities throughout Northern and Central California. Tri Counties Bank provides an extensive and competitive breadth of consumer, small business and commercial banking financial services, along with convenient around-the-clock ATM, online and mobile banking access. Brokerage services are provided by Tri Counties Advisors through affiliation with Raymond James Financial Services, Inc. Visit www.TriCountiesBank.com to learn more.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240226326413/en/

Peter G. Wiese, EVP & CFO, (530) 898-0300

Source: TriCo Bancshares

FAQ

What is the dividend amount declared by TriCo Bancshares (NASDAQ: TCBK)?

TriCo Bancshares declared a quarterly cash dividend of $0.33 per share on its common stock.

When is the dividend payable to shareholders?

The dividend is payable on March 22, 2024, to holders of record on March 8, 2024.

How does the current dividend compare to the previous quarter for TriCo Bancshares (NASDAQ: TCBK)?

The current dividend represents a 10% increase over the prior quarter.

What is the total number of consecutive quarterly payments made by TriCo Bancshares (NASDAQ: TCBK) in terms of dividends?

This dividend marks the 138th consecutive quarterly payment made by the company since 1989.