Equibles

8-K

TRICO BANCSHARES / (TCBK)

8-K 2022-07-27 For: 2022-07-27
View Original
Added on April 04, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

____________________

FORM 8-K

_________________________________________

Current report pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

July 27, 2022

_______________________

tcbk-20220727_g1.jpg

(Exact name of registrant as specified in its charter)

_______________________

California 0-10661 94-2792841
(State or other jurisdiction of<br>incorporation or organization) (Commission File No.) (I.R.S. Employer<br>Identification No.)
63 Constitution Drive Chico, California 95973
--- --- --- ---
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (530) 898-0300

_____________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
--- --- ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
--- --- ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
--- ---

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading<br>Symbol(s) Name of each exchange<br>on which registered
Common Stock, no par value TCBK Nasdaq

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02    Results of Operations and Financial Condition

On July 27, 2022, TriCo Bancshares (the "Company") announced its unaudited financial results for the three and six month periods ended June 30, 2022. A copy of the press release is attached as Exhibit 99.1 to this to this Form 8-K and is incorporated herein by reference.

Item 7.01    Regulation FD Disclosure

The executive officers of the Company intend to use the materials filed herewith, in whole or in part, in one or more presentations, discussions or meetings with investors. A copy of the investor presentation is attached hereto as Exhibit 99.2.

Item 9.01    Financial Statements and Exhibits

(d) Exhibits

99.1    Press release dated July 27, 2022

99.2     Investor Presentation

The information furnished under Item 2.02, Item 7.01 and Item 9.01 of this Current Period on Form 8-K, including the exhibit, shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section, nor shall it be deemed incorporated by reference in any registration statement or other filings of TriCo Bancshares under the Securities Act of 1933, as amended, except as shall be set forth by specific reference in such filing.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

TRICO BANCSHARES
Date: July 27, 2022 /s/ Peter G. Wiese
Peter G. Wiese, Executive Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)

Document

Exhibit 99.1

Contact: Peter G. Wiese, EVP & CFO, (530) 898-0300
For Immediate Release

TRICO BANCSHARES ANNOUNCES SECOND QUARTER 2022 RESULTS

Notable Items for Second Quarter 2022

•Results for the quarter reflect the full operational impact of the March 25, 2022 merger with Valley Republic Bancorp.

•Organic loan growth, excluding PPP, for the quarter of $300.3 million or 20.7% annualized and credit quality continued to show improvement, while organic deposit growth for the quarter was $42.3 million or 1.9% annualized

•Net interest margin, excluding the benefit from acquired loan discount accretion and PPP loan yield, increased 0.28% to 3.57%

•Quarterly pre-tax pre-provision net revenues grew to $45.2 million, inclusive of $2.2 million in merger expenses, as compared to $36.6 million, inclusive of $4.0 million in merger expenses, in the trailing quarter and $38.9 million in the same quarter of the prior year

"While we continue to build on the strength of our core franchise, we are cautiously optimistic despite the potential volatility which may be forthcoming for the financial services industry," noted Rick Smith, President and Chief Executive Officer. Peter Wiese, EVP and Chief Financial Officer added, "We are pleased with the increase in rates, as well as the mix shift of our average earning assets, which facilitated meaningful expansion of net interest margin and the growth in revenues for the quarter."

CHICO, CA – (July 27, 2022) – TriCo Bancshares (NASDAQ: TCBK) (the “Company”), parent company of Tri Counties Bank, today announced net income of $31,364,000 for the quarter ended June 30, 2022, compared to $20,374,000 during the trailing quarter ended March 31, 2022, and $28,362,000 during the quarter ended June 30, 2021. Diluted earnings per share were $0.93 for the second quarter of 2022, compared to $0.67 for the first quarter of 2022 and $0.95 for the second quarter of 2021.

Financial Highlights

Performance highlights and other developments for the Company as of or for the three and six months ended June 30, 2022, included the following:

•For the three and six months ended June 30, 2022, the Company’s return on average assets was 1.24% and 1.10%, while the return on average equity was 11.53% and 9.93%, respectively. These ratios were impacted by merger related expenses of $2,221,000 and $6,253,000 for the respective periods in 2022.

•Organic loan growth, excluding PPP and acquired loans, totaled $300.3 million (20.7% annualized) for the current quarter and $638.4 million (13.6% annualized) for the trailing twelve-month period.

•For the current quarter, net interest margin, less the effect of acquired loan discount accretion and PPP yields (non-GAAP), on a tax equivalent basis was 3.57%, an increase of 28 basis points from 3.29% in the trailing quarter.

•The efficiency ratio was 55.45% for the three months ended June 30, 2022, as compared to 55.95% for the trailing quarter.

•As of June 30, 2022, the Company reported total loans, total assets and total deposits of $6.1 billion, $10.1 billion and $8.8 billion, respectively. As a direct result of organic loan growth during the quarter, the loan to deposit ratio has increased to 69.8% as of June 30, 2022, as compared to 67.2% as of the trailing quarter.

•The average rate of interest paid on deposits, including non-interest-bearing deposits, equaled 0.04% during the second quarter of 2022, consistent with 0.04% during the trailing quarter, and representing a decrease of one basis point from the average rate paid of 0.05% during the same quarter of the prior year.

•Noninterest income related to service charges and fees was $13.0 million for the three month period ended June 30, 2022, an increase of 19.3% when compared to the same period in 2021.

•The provision for credit losses for loans and debt securities was approximately $2.1 million during the quarter ended June 30, 2022, as compared to a provision expense of $8.3 million during the trailing quarter ended March 31, 2022, and a reversal of provision expense totaling $0.3 million for the three month period ended June 30, 2021.

•The allowance for credit losses to total loans was 1.60% as of June 30, 2022, compared to 1.64% as of the trailing quarter end, and 1.74% as of June 30, 2021. Non-performing assets to total assets were 0.15% at June 30, 2022, as compared to 0.17% as of March 31, 2022, and 0.43% at June 30, 2021.

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Financial results reported in this document are preliminary. Final financial results and other disclosures will be reported in our Annual Report on Form 10-Q for the period ended June 30, 2022, and may differ materially from the results and disclosures in this document due to, among other things, the completion of final review procedures, the occurrence of subsequent events, or the discovery of additional information.

Summary Results

The following is a summary of the components of the Company’s operating results and performance ratios for the periods indicated:

Three months ended
June 30, March 31,
(dollars and shares in thousands, except per share data) 2022 2022 Change % Change
Net interest income $ 85,046 $ 67,924 25.2 %
Provision for credit losses (2,100) (8,330) 6,230 (74.8) %
Noninterest income 16,430 15,096 1,334 8.8 %
Noninterest expense (56,264) (46,447) (9,817) 21.1 %
Provision for income taxes (11,748) (7,869) (3,879) 49.3 %
Net income $ 31,364 $ 20,374 53.9 %
Diluted earnings per share $ 0.93 $ 0.67 38.8 %
Dividends per share $ 0.25 $ 0.25 — %
Average common shares 33,561 30,050 3,511 11.7 %
Average diluted common shares 33,705 30,202 3,503 11.6 %
Return on average total assets 1.24 % 0.94 %
Return on average equity 11.53 % 8.19 %
Efficiency ratio 55.45 % 55.95 %

All values are in US Dollars.

Three months ended<br>June 30,
(dollars and shares in thousands, except per share data) 2022 2021 Change % Change
Net interest income $ 85,046 $ 67,083 26.8 %
(Provision for) reversal of credit losses (2,100) 260 (2,360) (907.7) %
Noninterest income 16,430 15,957 473 3.0 %
Noninterest expense (56,264) (44,171) (12,093) 27.4 %
Provision for income taxes (11,748) (10,767) (981) 9.1 %
Net income $ 31,364 $ 28,362 10.6 %
Diluted earnings per share $ 0.93 $ 0.95 (2.1) %
Dividends per share $ 0.25 $ 0.25 — %
Average common shares 33,561 29,719 3,842 12.9 %
Average diluted common shares 33,705 29,904 3,801 12.7 %
Return on average total assets 1.24 % 1.40 %
Return on average equity 11.53 % 11.85 %
Efficiency ratio 55.45 % 53.19 %

All values are in US Dollars.

Six months ended<br>June 30,
(dollars and shares in thousands) 2022 2021 Change % Change
Net interest income $ 152,970 $ 133,523 14.6 %
Reversal of (provision for) credit losses (10,430) 6,320 (16,750) (265.0) %
Noninterest income 31,526 32,067 (541) (1.7) %
Noninterest expense (102,711) (85,789) (16,922) 19.7 %
Provision for income taxes (19,617) (24,110) 4,493 (18.6) %
Net income $ 51,738 $ 62,011 (16.6) %
Diluted earnings per share $ 1.62 $ 2.07 (21.7) %
Dividends per share $ 0.50 $ 0.50 — %
Average common shares 31,815 29,723 2,092 7.0 %
Average diluted common shares 31,963 29,904 2,059 6.9 %
Return on average total assets 1.10 % 1.57 %
Return on average equity 9.93 % 13.16 %
Efficiency ratio 55.67 % 51.81 %

All values are in US Dollars.

Balance Sheet

Total loans outstanding, excluding PPP, grew to $6.10 billion as of June 30, 2022, an increase of 29.5% over the prior twelve months, of which 13.6% was related to organic loan growth. Investments increased to $2.80 billion as of June 30, 2022, an increase of 33.2% annualized over the prior twelve months. Quarterly average earning assets to quarterly total average assets were generally unchanged at 92.2% at June 30, 2022, as compared to 92.9% and 92.8% at March 31, 2022, and June 30, 2021, respectively. The loan to deposit ratio was 69.8% at June 30, 2022, as compared to 67.2% and 70.7% at March 31, 2022, and June 30, 2021, respectively.

Total shareholders' equity decreased by $67,005,000 during the quarter ended June 30, 2022, as a result of an increase in accumulated other comprehensive losses of $68,611,000, share repurchases totaling approximately $21,750,000, and cash dividend payments on common stock of $8,360,000, partially offset by net income of $31,364,000. As a result, the Company’s book value was $31.25 per share at June 30, 2022 as compared to $32.78 and $32.53 at March 31, 2022, and June 30, 2021, respectively. The Company’s tangible book value per share, a non-GAAP measure, calculated by subtracting goodwill and other intangible assets from total shareholders’ equity and dividing that sum by total shares outstanding, was $21.41 per share at June 30, 2022, as compared to $23.04 and $24.60 at March 31, 2022, and June 30, 2021, respectively.

Trailing Quarter Balance Sheet Change

Ending balances June 30, March 31, Annualized<br> % Change
(dollars in thousands) 2022 2022 Change
Total assets $ 10,120,611 $ 10,118,328 0.1 %
Total loans 6,113,421 5,851,975 261,446 17.9
Total loans, excluding PPP 6,095,667 5,795,370 300,297 20.7
Total investments 2,802,815 2,569,706 233,109 36.3
Total deposits $ 8,756,775 $ 8,714,477 1.9 %

All values are in US Dollars.

Organic loan growth, excluding PPP, of $300,297,000 or 20.7% on an annualized basis was realized during the quarter ended June 30, 2022, primarily within commercial real estate. During the quarter, and exclusive of PPP balance changes, loan originations totaled approximately $697 million while payoffs of loans totaled $397 million, which compares to origination and payoff activity during the three months ended March 31, 2022 of $396 million and $225 million, respectively. While management believes that loan pipelines are robust, loan activity during the quarter is reflective of increased customer awareness of the rising interest rate environment. Investment security growth was $233,109,000 or 36.3% on an annualized basis as excess liquidity from strong deposit growth during the trailing 12 month period was put to use in higher yielding earning assets. Deposit balances increased, with an organic change of $42,298,000 or 1.9% annualized during the period.

Average Trailing Quarter Balance Sheet Change

Quarterly average balances for the period ended June 30, March 31, Acquired Balances Organic Change Organic <br>% Change
(dollars in thousands) 2022 2022 Change
Total assets $ 10,121,714 $ 8,778,256 $ 1,302,928 1.8 %
Total loans 5,928,430 4,988,560 939,870 739,017 200,853 16.1
Total loans, excluding PPP 5,890,578 4,937,865 952,713 718,557 234,156 19.0
Total investments 2,732,466 2,457,077 275,389 104,840 170,549 27.8
Total deposits $ 8,743,320 $ 7,521,930 $ 1,161,458 3.2 %

All values are in US Dollars.

Year Over Year Balance Sheet Change

Ending balances As of June 30, Acquired Balances Organic Change Organic<br> % Change
(dollars in thousands) 2022 2021 Change
Total assets $ 10,120,611 $ 8,170,365 $ 1,363,529 7.2 %
Total loans 6,113,421 4,944,894 1,168,527 773,390 395,137 8.0
Total loans, excluding PPP 6,095,667 4,705,302 1,390,365 751,978 638,387 13.6
Total investments 2,802,815 2,103,575 699,240 109,716 589,524 28.0
Total deposits $ 8,756,775 $ 6,992,053 $ 1,215,479 7.9 %

All values are in US Dollars.

Non-PPP loan balances have increased as a result of organic activities by approximately $638,387,000 during the twelve month period ending June 30, 2022. This, combined with earning assets acquired in the merger with Valley Republic Bank, has led to a long-term beneficial and meaningful shift in the makeup of the loan portfolio. Specifically, during the twelve months ended June 30, 2022 and excluding PPP balance changes, loan originations totaled approximately $2.2 billion while payoffs of loans totaled $1.6 billion. Investment securities increased to $2,802,815,000 at June 30, 2022, an organic change of $589,524,000 or 28.0% from the prior year.

Net Interest Income and Net Interest Margin

The following is a summary of the components of net interest income for the periods indicated:

Three months ended
June 30, March 31,
(dollars in thousands) 2022 2022 Change % Change
Interest income $ 86,955 $ 69,195 $ 17,760 25.7 %
Interest expense (1,909) (1,271) (638) 50.2 %
Fully tax-equivalent adjustment (FTE) (1) 397 283 114 40.3 %
Net interest income (FTE) $ 85,443 $ 68,207 $ 17,236 25.3 %
Net interest margin (FTE) 3.67 % 3.39 %
Acquired loans discount accretion, net:
Amount (included in interest income) $ 1,677 $ 1,323 $ 354 26.8 %
Net interest margin less effect of acquired loan discount accretion(1) 3.60 % 3.32 % 0.28 %
PPP loans yield, net:
Amount (included in interest income) $ 964 $ 1,097 $ (133) (12.1) %
Net interest margin less effect of PPP loan yield (1) 3.65 % 3.36 % 0.29 %
Acquired loans discount accretion and PPP loan yield, net:
Amount (included in interest income) $ 2,641 $ 2,420 $ 221 9.1 %
Net interest margin less effect of acquired loan discount accretion and PPP loan yield (1) 3.57 % 3.29 % 0.28 %
Three months ended<br>June 30,
--- --- --- --- --- --- --- --- --- --- --- ---
(dollars in thousands) 2022 2021 Change % Change
Interest income $ 86,955 $ 68,479 $ 18,476 27.0 %
Interest expense (1,909) (1,396) (513) 36.7 %
Fully tax-equivalent adjustment (FTE) (1) 397 255 142 55.7 %
Net interest income (FTE) $ 85,443 $ 67,338 $ 18,105 26.9 %
Net interest margin (FTE) 3.67 % 3.58 %
Acquired loans discount accretion, net:
Amount (included in interest income) $ 1,677 $ 2,566 $ (889) (34.6) %
Net interest margin less effect of acquired loan discount accretion(1) 3.60 % 3.44 % 0.16 %
PPP loans yield, net:
Amount (included in interest income) $ 964 $ 3,179 $ (2,215) (69.7) %
Net interest margin less effect of PPP loan yield (1) 3.65 % 3.57 % 0.08 %
Acquired loans discount accretion and PPP loan yield, net:
Amount (included in interest income) $ 2,641 $ 5,745 $ (3,104) (54.0) %
Net interest margin less effect of acquired loan discount accretion and PPP loan yield (1) 3.57 % 3.43 % 0.14 %
Six months ended<br>June 30,
--- --- --- --- --- --- --- --- --- --- --- ---
(dollars in thousands) 2022 2021 Change % Change
Interest income $ 156,150 $ 136,395 $ 19,755 14.5 %
Interest expense (3,180) (2,872) (308) 10.7 %
Fully tax-equivalent adjustment (FTE) (1) 680 532 148 27.8 %
Net interest income (FTE) $ 153,650 $ 134,055 $ 19,595 14.6 %
Net interest margin (FTE) 3.54 % 3.66 %
Acquired loans discount accretion, net:
Amount (included in interest income) $ 3,000 $ 4,278 $ (1,278) (29.9) %
Net interest margin less effect of acquired loan discount accretion(1) 3.51 % 3.54 % (0.03) %
PPP loans yield, net:
Amount (included in interest income) $ 2,061 $ 9,042 $ (6,981) (77.2) %
Net interest margin less effect of PPP loan yield (1) 3.51 % 3.59 % (0.08) %
Acquired loans discount accretion and PPP loan yield, net:
Amount (included in interest income) $ 5,061 $ 13,320 $ (8,259) (62.0) %
Net interest margin less effect of acquired loans discount and PPP loan yield (1) 3.44 % 3.46 % (0.02) %

(1)Certain information included herein is presented on a fully tax-equivalent (FTE) basis and / or to present additional financial details which may be desired by users of this financial information. The Company believes the use of these non-generally accepted accounting principles (non-GAAP) measures provide additional clarity in assessing its results, and the presentation of these measures are common practice within the banking industry. See additional information related to non-GAAP measures at the back of this document.

Loans may be acquired at a premium or discount to par value, in which case, the premium is amortized (subtracted from) or the discount is accreted (added to) interest income over the remaining life of the loan. Generally, as time goes on, the dollar impact of loan discount accretion and loan premium amortization decrease as the purchased loans mature or pay off early. Upon the early pay off of a loan, any remaining unaccreted discount or unamortized premium is immediately taken into interest income; and as loan payoffs may vary significantly from quarter to quarter, so may the impact of discount accretion and premium amortization on interest income. As a result of the increase in interest rates, the prepayment rate of portfolio loans, inclusive of those acquired at a premium or discount, declined during the first two quarters of 2022. During the three months ended June 30, 2022, March 31, 2022, and June 30, 2021, purchased loan discount accretion was $1,677,000, $1,323,000, and $2,566,000, respectively.

The following table shows the components of net interest income and net interest margin on a fully tax-equivalent (FTE) basis for the quarterly periods indicated:

ANALYSIS OF CHANGE IN NET INTEREST MARGIN ON EARNING ASSETS

(unaudited, dollars in thousands)

Three months ended Three months ended Three months ended
June 30, 2022 March 31, 2022 June 30, 2021
Average<br>Balance Income/<br>Expense Yield/<br>Rate Average<br>Balance Income/<br>Expense Yield/<br>Rate Average<br>Balance Income/<br>Expense Yield/<br>Rate
Assets
Loans, excluding PPP $ 5,890,578 $ 68,954 4.70 % $ 4,937,865 $ 56,648 4.65 % $ 4,646,188 $ 57,125 4.93 %
PPP loans 37,852 964 10.22 % 50,695 1,097 8.78 % 332,277 3,179 3.84 %
Investments-taxable 2,536,362 14,350 2.27 % 2,313,204 10,223 1.79 % 1,875,056 7,189 1.54 %
Investments-nontaxable (1) 196,104 1,720 3.52 % 143,873 1,225 3.45 % 132,034 1,106 3.36 %
Total investments 2,732,466 16,070 2.36 % 2,457,077 11,448 1.89 % 2,007,090 8,295 1.66 %
Cash at Federal Reserve and other banks 669,163 1,364 0.82 % 707,563 285 0.16 % 559,026 135 0.10 %
Total earning assets 9,330,059 87,352 3.76 % 8,153,200 69,478 3.46 % 7,544,581 68,734 3.65 %
Other assets, net 791,655 625,056 584,093
Total assets $ 10,121,714 $ 8,778,256 $ 8,128,674
Liabilities and shareholders’ equity
Interest-bearing demand deposits $ 1,799,205 $ 99 0.02 % $ 1,597,309 $ 84 0.02 % $ 1,490,247 $ 77 0.02 %
Savings deposits 3,003,337 529 0.07 % 2,571,023 327 0.05 % 2,316,889 308 0.05 %
Time deposits 337,007 220 0.26 % 301,499 268 0.36 % 324,867 443 0.55 %
Total interest-bearing deposits 5,139,549 848 0.07 % 4,469,831 679 0.06 % 4,132,003 828 0.08 %
Other borrowings 35,253 5 0.06 % 44,731 5 0.05 % 40,986 5 0.05 %
Junior subordinated debt 100,991 1,056 4.19 % 60,971 587 3.90 % 57,788 563 3.91 %
Total interest-bearing liabilities 5,275,793 1,909 0.15 % 4,575,533 1,271 0.11 % 4,230,777 1,396 0.13 %
Noninterest-bearing deposits 3,603,771 3,052,099 2,811,078
Other liabilities 150,696 141,400 126,674
Shareholders’ equity 1,091,454 1,009,224 960,145
Total liabilities and shareholders’ equity $ 10,121,714 $ 8,778,256 $ 8,128,674
Net interest rate spread (1) (2) 3.61 % 3.35 % 3.52 %
Net interest income and margin (1) (3) $ 85,443 3.67 % $ 68,207 3.39 % $ 67,338 3.58 %

(1)Fully taxable equivalent (FTE). All yields and rates are calculated using specific day counts for the period and year as applicable.

(2)Net interest spread is the average yield earned on interest-earning assets minus the average rate paid on interest-bearing liabilities.

(3)Net interest margin is computed by calculating the difference between interest income and interest expense, divided by the average balance of interest-earning assets.

Net interest income (FTE) during the three months ended June 30, 2022 increased $17,236,000 or 25.3% to $85,443,000 compared to $68,207,000 during the three months ended March 31, 2022. In addition, net interest margin improved 28 basis points to 3.67%, as compared to the trailing quarter. The increase in net interest income is primarily attributed to an additional $4,622,000 in investment revenues and $1,079,000 in revenues on cash balances due to increases in average volume and rates, respectively. As a partial offset, increases in the average balance and rates on subordinated debt resulted in an increase in interest expense of $469,000 over the trailing quarter.

As compared to the same quarter in the prior year, average loan yields, excluding PPP, decreased 23 basis points from 4.93% during the three months ended June 30, 2021, to 4.70% during the three months ended June 30, 2022. The accretion of discounts from acquired loans added 11 and 22 basis points to loan yields during the quarters ended June 30, 2022 and June 30, 2021, respectively. Therefore, of the 23 basis point decrease in yields on loans during the comparable three month periods ended June 30, 2022 and 2021, 12 basis points was attributable to changes in competitive market rates, while 11 basis points resulted from less accretion of discounts.

The rates paid on interest bearing deposits generally remained flat during the quarter ended June 30, 2022 compared to the trailing quarter. The cost of interest-bearing deposits decreased by 1 basis point during the quarter ended June 30, 2022, to 0.07% from 0.08% during the same quarter of the prior year. In addition, the level of noninterest-bearing deposits continues to benefit the average cost of total deposits which remained flat at 0.04% in both the current and trailing quarter, compared to 0.5% in the second quarter of the prior year. Specifically, the ratio of average total noninterest-bearing deposits to total average deposits was 41.2% and 40.6% as of June 30, 2022 and March 31, 2022, respectively, as compared to 40.5% for the quarter ended June 30, 2021.

Six months ended June 30, 2022 Six months ended June 30, 2021
Average<br>Balance Income/<br>Expense Yield/<br>Rate Average<br>Balance Income/<br>Expense Yield/<br>Rate
Assets
Loans, excluding PPP $ 5,416,854 $ 125,602 4.68 % $ 4,527,329 $ 111,698 4.98 %
PPP loans 44,238 2,061 9.40 % 344,011 9,042 5.30 %
Investments-taxable 2,434,045 24,573 2.04 % 1,763,140 13,583 1.55 %
Investments-nontaxable (1) 170,132 2,945 3.49 % 128,564 2,306 3.62 %
Total investments 2,604,177 27,518 2.13 % 1,891,704 15,889 1.69 %
Cash at Federal Reserve and other banks 688,257 1,649 0.48 % 629,952 298 0.10 %
Total earning assets 8,753,526 156,830 3.61 % 7,392,996 136,927 3.73 %
Other assets, net 700,170 575,138
Total assets $ 9,453,696 $ 7,968,134
Liabilities and shareholders’ equity
Interest-bearing demand deposits $ 1,698,815 $ 183 0.02 % $ 1,461,377 $ 153 0.02 %
Savings deposits 2,788,374 856 0.06 % 2,272,830 637 0.06 %
Time deposits 319,351 488 0.31 % 330,703 975 0.59 %
Total interest-bearing deposits 4,806,540 1,527 0.06 % 4,064,910 1,765 0.09 %
Other borrowings 39,966 10 0.05 % 36,870 9 0.05 %
Junior subordinated debt 81,092 1,643 4.09 % 57,739 1,098 3.83 %
Total interest-bearing liabilities 4,927,598 3,180 0.13 % 4,159,519 2,872 0.14 %
Noninterest-bearing deposits 3,329,459 2,734,922
Other liabilities 146,073 123,233
Shareholders’ equity 1,050,566 950,460
Total liabilities and shareholders’ equity $ 9,453,696 $ 7,968,134
Net interest rate spread (1) (2) 3.48 % 3.59 %
Net interest income and margin (1) (3) $ 153,650 3.54 % $ 134,055 3.66 %

(1)Fully taxable equivalent (FTE). All yields and rates are calculated using specific day counts for the period and year as applicable.

(2)Net interest spread is the average yield earned on interest-earning assets minus the average rate paid on interest-bearing liabilities.

(3)Net interest margin is computed by calculating the difference between interest income and interest expense, divided by the average balance of interest-earning assets.

Interest Rates and Loan Portfolio Composition

During the quarter ended June 30, 2022, market interest rates, including many rates that serve as reference indices for variable rate loans, increased modestly. However, the loan portfolio yield continues to have a temporary downward bias due to the timing associated with the repricing of variable rate loans and continued market competition. As of June 30, 2022, the Company's loan portfolio consisted of approximately $6.1 billion in outstanding principal with a weighted average coupon rate of 4.39%, inclusive of PPP loans. Excluding PPP loans, the Company's loan portfolio has approximately $6.09 billion outstanding loan balances with a weighted average coupon rate of 4.40% as of June 30, 2022. Included in the June 30, 2022 loan total are variable rate loans totaling $3.5 billion, of which, $875 million are considered floating based on the Wall Street Prime index.

Asset Quality and Credit Loss Provisioning

During the three months ended June 30, 2022, the Company recorded a provision for credit losses of $2,100,000, as compared to a $8,330,000 provision during the trailing quarter, and a reversal of provision expense of $260,000 during the first quarter of 2021.

The following table presents details of the provision for credit losses for the periods indicated:

Three months ended
(dollars in thousands) June 30, 2022 March 31, 2022 December 31, 2021 June 30, 2021
Addition to (reversal of) allowance for credit losses $ 1,940 $ 8,205 $ 715 $ (145)
Addition to (reversal of) reserve for unfunded loan commitments 160 125 265 (115)
Total provision for (reversal of) credit losses $ 2,100 $ 8,330 $ 980 $ (260)

The following table presents the activity in the allowance for credit losses on loans for the periods indicated:

Three months ended Six months ended
(dollars in thousands) June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021
Balance, beginning of period $ 96,049 $ 85,941 $ 85,376 $ 91,847
ACL at acquisition for PCD loans — — 2,037 —
Provision for (reversal of) credit losses 1,940 (145) 10,145 (6,385)
Loans charged-off (401) (387) (1,144) (613)
Recoveries of previously charged-off loans 356 653 1,530 1,213
Balance, end of period $ 97,944 $ 86,062 $ 97,944 $ 86,062

The allowance for credit losses (ACL) was $97,944,000 as of June 30, 2022, a net increase of $1,895,000 over the immediately preceding quarter. The provision for credit losses of $1,940,000 during the quarter was the net effect of increases in required reserves due to loan growth and net charge-offs totaling $45,000. By comparison, the provision for credit losses of $10,145,000 during the six-months ended June 30, 2022 was generally comprised of $10,820,000 in association with the loans acquired from Valley Republic Bank and a net reversal of credit losses of $675,000. The qualitative components of the ACL resulted in a net decline in required reserves due to continued improvement in US employment rates and tempered by a weaker outlook of US GDP. Meanwhile, the quantitative component of the ACL increased reserve requirements over the trailing quarter due to loan volume growth partially offset by decreases in reserves associated with specifically evaluated loans.

The Company utilizes a forecast period of approximately eight quarters and obtains the forecast data from publicly available sources as of the balance sheet date. This forecast data continues to evolve and included improving shifts in the magnitude of changes for both the unemployment and GDP factors leading up to the balance sheet date, particularly CA unemployment trends. However, management notes that the majority of economic forecasts utilized in the ACL calculation have remained directionally consistent with preceding quarters, as general economic conditions continue to improve, albeit at a pace slower than expected due to unforeseen disruptions in the supply chain and increasing energy prices. In addition, management notes that the actual and forecast increases in inflation that were previously identified by the Federal Reserve Board as "transitory", combined with overseas conflicts and leading to the rise in short-term interest rates and flattening or inversion of the yield curve, may be further indication of future economic contraction. As a result, management continues to believe that certain credit weakness are likely present in the overall economy and that it is appropriate to cautiously maintain a reserve level that incorporates such risk factors.

Loans past due 30 days or more decreased by $2,482,000 during the quarter ended June 30, 2022 to $5,920,000, as compared to $8,402,000 at March 31, 2022. Non-performing loans were $11,925,000 at June 30, 2022, a decrease of $2,163,000 and $20,780,000 from $14,088,000 and $32,705,000 as of March 31, 2022 and June 30, 2021, respectively.

The following table illustrates the total loans by risk rating and their respective percentage of total loans for the periods presented.

June 30, % of Total Loans March 31, % of Total Loans June 30, % of Total Loans
(dollars in thousands) 2022 2022 2021
Risk Rating:
Pass $ 5,960,781 97.5 % $ 5,682,026 97.1 % $ 4,756,381 96.2 %
Special Mention 105,819 1.7 % 120,684 2.1 % 130,232 2.6 %
Substandard 46,821 0.8 % 49,265 0.8 % 58,281 1.2 %
Total $ 6,113,421 $ 5,851,975 $ 4,944,894
Classified loans to total loans 0.77 % 0.84 % 1.18 %
Loans past due 30+ days to total loans 0.10 % 0.14 % 0.19 %

The ratio of classified loans to total loans improved to 0.77% as of June 30, 2022 as compared to both 0.84% and 1.18% for the trailing quarter and same quarter of the prior year, respectively. The Company's criticized loan balances decreased during the current quarter by approximately $17,309,000 to $152,640,000 as of June 30, 2022. The improvement in criticized loans was the result of active management by the credit department, as there were no loan sales during the period. The five largest criticized credits upgraded or paid off totaled approximately $8,800,000, and there were no charge-offs incurred in connection with the successful management of these credits.

There was one property added to other real estate owned totaling $375,000 during the quarter ended June 30, 2022, and no disposals. As of June 30, 2022, other real estate owned consisted of nine properties with a carrying value of approximately $3,379,000.

Non-performing assets of $15,304,000 at June 30, 2022 represented 0.15% of total assets, a decrease from the $16,995,000 or 0.17% and $34,952,000 or 0.43% as of March 31, 2022 and June 30, 2021, respectively. The improvement in non-performing assets during the current quarter was spread amongst several lending relationships.

Allocation of Credit Loss Reserves by Loan Type

As of June 30, 2022 As of December 31, 2021 As of June 30, 2021
(dollars in thousands) Amount % of Loans Outstanding Amount % of Loans Outstanding Amount % of Loans Outstanding
Commercial real estate:
CRE - Non Owner Occupied $ 28,081 1.41 % $ 25,739 1.61 % $ 26,028 1.70 %
CRE - Owner Occupied 12,620 1.35 % 10,691 1.51 % 10,463 1.59 %
Multifamily 11,795 1.36 % 12,395 1.51 % 13,196 1.59 %
Farmland 2,954 1.17 % 2,315 1.34 % 1,950 1.13 %
Total commercial real estate loans 55,450 1.37 % 51,140 1.55 % 51,637 1.62 %
Consumer:
SFR 1-4 1st Liens 10,311 1.43 % 10,723 1.60 % 10,629 1.61 %
SFR HELOCs and Junior Liens 11,591 3.01 % 10,510 3.11 % 10,701 3.29 %
Other 2,029 3.41 % 2,241 3.34 % 2,620 3.73 %
Total consumer loans 23,931 2.06 % 23,474 2.19 % 23,950 2.27 %
Commercial and Industrial 9,979 1.97 % 3,862 1.49 % 4,511 1.00 %
Construction 7,522 2.40 % 5,667 2.55 % 4,951 2.47 %
Agricultural Production 1,046 1.47 % 1,215 2.39 % 1,007 2.40 %
Leases 16 0.20 % 18 0.27 % 6 0.12 %
Allowance for credit losses 97,944 1.60 % 85,376 1.74 % 86,062 1.74 %
Reserve for unfunded loan commitments 4,075 3,790 3,465
Total allowance for credit losses $ 102,019 1.67 % $ 89,166 1.81 % $ 89,527 1.81 %

For the periods presented in the table above and for purposes of calculating the "% of Loans Outstanding", PPP loans are included in the segment "Commercial and Industrial." PPP loans are fully guaranteed and therefore would not require any loss reserve allocation. Excluding the net outstanding balances of PPP loans from the ratio of the ACL to total loans results in a reserve ratio of approximately 1.61% as of June 30, 2022. In addition to the allowance for credit losses above, the Company has acquired various performing loans whose fair value as of the acquisition date was determined to be less than the principal balance owed on those loans. This difference represents the collective discount of credit, interest rate and liquidity measurements which is expected to be amortized over the life of the loans. As of June 30, 2022, the unamortized discount associated with acquired loans totaled $33,100,000 and, if aggregated with the ACL, would collectively represent 2.13% of total gross loans and 2.15% of total loans less PPP loans.

SBA Paycheck Protection Program

In March 2020 (Round 1) and subsequently in December 2020 (Round 2), the Small Business Administration ("SBA") Paycheck Protection Program ("PPP") was created to help small businesses keep workers employed during the COVID-19 crisis. Tri Counties Bank, through its online portal, facilitated the ability for borrowers to open a new deposit account and submit PPP applications during the entirety of the Programs. The SBA ended PPP and did not accept new borrowing applications, effective May 31, 2021. The following is a summary of PPP loan related information as of the periods indicated:

(dollars in thousands) June 30, 2022 December 31, 2021 June 30, 2021
Total number of PPP loans outstanding 90 450 2,209
PPP loan balance (TCBK round 1 origination), gross $ 1,183 $ 2,544 $ 51,547
PPP loan balance (TCBK round 2 origination), gross 9,442 60,767 197,035
Acquired PPP loan balance (VRB origination), gross 7,447 — —
Total PPP loans, gross outstanding $ 18,072 $ 63,311 $ 248,582
PPP deferred loan fees (Round 1 origination) — 1 477
PPP deferred loan fees (Round 2 origination) 318 2,163 8,513
Total PPP deferred loan fees (costs) outstanding $ 318 $ 2,164 $ 8,990

As of June 30, 2022, there was approximately $318,000 in net deferred fee income remaining to be recognized. During the three months ended June 30, 2022, the Company recognized $872,000 in fees on PPP loans as compared with $974,000 and $2,334,000 for the three months ended March 31, 2022 and June 30, 2021, respectively. Based on the payment guarantee provided by the SBA as well as the expected short-term duration of the PPP loans acquired from VRB, the fair value of these loans approximates the principal balance outstanding as of the merger date, and therefore, no purchase discount was recorded.

Non-interest Income

The following table presents the key components of non-interest income for the current and trailing quarterly periods indicated:

Three months ended
(dollars in thousands) June 30, 2022 March 31, 2022 Change % Change
ATM and interchange fees $ 6,984 $ 6,243 $ 741 11.9 %
Service charges on deposit accounts 4,163 3,834 329 8.6 %
Other service fees 1,279 882 397 45.0 %
Mortgage banking service fees 482 463 19 4.1 %
Change in value of mortgage servicing rights 136 274 (138) (50.4) %
Total service charges and fees 13,044 11,696 1,348 11.5 %
Increase in cash value of life insurance 752 638 114 17.9 %
Asset management and commission income 1,039 887 152 17.1 %
Gain on sale of loans 542 1,246 (704) (56.5) %
Lease brokerage income 238 158 80 50.6 %
Sale of customer checks 441 104 337 324.0 %
Gain on sale of investment securities — — — n/m
Loss on marketable equity securities (94) (137) 43 (31.4) %
Other 468 504 (36) (7.1) %
Total other non-interest income 3,386 3,400 (14) (0.4) %
Total non-interest income $ 16,430 $ 15,096 $ 1,334 8.8 %

Non-interest income increased $1,334,000 or 8.8% to $16,430,000 during the three months ended June 30, 2022, compared to $15,096,000 during the quarter ended March 31, 2022. Generally, the quarter over quarter changes reflect the VRB merger timing of March 25, 2022, and therefore, had minimal benefit in the trailing quarter but are captured fully within the current quarter ended June 30, 2022. As an outlier, the gain on sale of mortgage loans declined by $704,000 or 56.5% during the quarter ended June 30, 2022, attributed to the rapidly rising rate environment and resulting decline in mortgage application and origination volumes.

The following table presents the key components of non-interest income for the current and prior year periods indicated:

Three months ended June 30,
(dollars in thousands) 2022 2021 Change % Change
ATM and interchange fees $ 6,984 $ 6,558 $ 426 6.5 %
Service charges on deposit accounts 4,163 3,462 701 20.2 %
Other service fees 1,279 914 365 39.9 %
Mortgage banking service fees 482 467 15 3.2 %
Change in value of mortgage servicing rights 136 (471) 607 (128.9) %
Total service charges and fees 13,044 10,930 2,114 19.3 %
Increase in cash value of life insurance 752 745 7 0.9 %
Asset management and commission income 1,039 947 92 9.7 %
Gain on sale of loans 542 2,847 (2,305) (81.0) %
Lease brokerage income 238 249 (11) (4.4) %
Sale of customer checks 441 116 325 280.2 %
Gain on sale of investment securities — — — n/m
(Loss) gain on marketable equity securities (94) 8 (102) (1,275.0) %
Other 468 115 353 307.0 %
Total other non-interest income 3,386 5,027 (1,641) (32.6) %
Total non-interest income $ 16,430 $ 15,957 $ 473 3.0 %

In addition to the discussion above, within the non-interest income for the three months ended June 30, 2022, ATM and interchange fees improved $426,000 or 6.5%, as did service charges on deposit accounts totaling $701,000 or 20.2%, both as a result of increased usage due to relaxed social distancing guidelines and growth in deposit customers during the six months ended June 30, 2022, when compared to the same period in the prior year. Further, changes in the value of mortgage service rights, while lesser in magnitude, typically have an inverse relationship with changes in mortgage banking activities.

Six months ended June 30,
(dollars in thousands) 2022 2021 Change % Change
ATM and interchange fees $ 13,227 $ 12,419 $ 808 6.5 %
Service charges on deposit accounts 7,997 6,731 1,266 18.8 %
Other service fees 2,161 1,785 376 21.1 %
Mortgage banking service fees 945 930 15 1.6 %
Change in value of mortgage servicing rights 410 (459) 869 (189.3) %
Total service charges and fees 24,740 21,406 3,334 15.6 %
Increase in cash value of life insurance 1,390 1,418 (28) (2.0) %
Asset management and commission income 1,926 1,781 145 8.1 %
Gain on sale of loans 1,788 6,094 (4,306) (70.7) %
Lease brokerage income 396 359 37 10.3 %
Sale of customer checks 545 235 310 131.9 %
Gain on sale of investment securities — — — n/m
Loss on marketable equity securities (231) (45) (186) 413.3 %
Other 972 819 153 18.7 %
Total other non-interest income 6,786 10,661 (3,875) (36.3) %
Total non-interest income $ 31,526 $ 32,067 $ (541) (1.7) %

The changes in non-interest income for the six months ended June 30, 2022 and 2021 are generally consistent with changes in the three months periods discussed above.

Non-interest Expense

The following table presents the key components of non-interest expense for the current and trailing quarterly periods indicated:

Three months ended
(dollars in thousands) June 30, 2022 March 31, 2022 Change % Change
Base salaries, net of deferred loan origination costs $ 22,169 $ 18,216 $ 3,953 21.7 %
Incentive compensation 4,282 2,583 1,699 65.8 %
Benefits and other compensation costs 6,491 5,972 519 8.7 %
Total salaries and benefits expense 32,942 26,771 6,171 23.1 %
Occupancy 3,996 3,575 421 11.8 %
Data processing and software 3,596 3,513 83 2.4 %
Equipment 1,453 1,333 120 9.0 %
Intangible amortization 1,702 1,228 474 38.6 %
Advertising 818 637 181 28.4 %
ATM and POS network charges 1,781 1,375 406 29.5 %
Professional fees 1,233 876 357 40.8 %
Telecommunications 564 521 43 8.3 %
Regulatory assessments and insurance 779 720 59 8.2 %
Merger and acquisition expenses 2,221 4,032 (1,811) (44.9) %
Postage 313 228 85 37.3 %
Operational (gain) loss 456 (183) 639 (349.2) %
Courier service 486 414 72 17.4 %
Gain on sale or acquisition of foreclosed assets (98) — (98) n/m
(Gain) loss on disposal of fixed assets 5 (1,078) 1,083 (100.5) %
Other miscellaneous expense 4,017 2,485 1,532 61.6 %
Total other non-interest expense 23,322 19,676 3,646 18.5 %
Total non-interest expense $ 56,264 $ 46,447 $ 9,817 21.1 %
Average full-time equivalent staff 1,183 1,084 99 9.1 %

Non-interest expense for the quarter ended June 30, 2022 increased $9,817,000 or 21.1% to $56,264,000 as compared to $46,447,000 during the trailing quarter ended March 31, 2022. Total salaries and benefits expense increased by $6,171,000 or 23.1%, led by wage related increases of $3,953,000 or 21.7% to $22,169,000 due to a net increase of 99 full-time equivalent positions following the aforementioned merger with VRB, an increase in vacation accruals which management believes are partially seasonal, and annual merit increases which averaged 3.1% and were effective March 28, 2022. Incentive compensation increased by $1,699,000 or 65.8% to $4,282,000 compared to the trailing quarter due to strong overall Company performance and elevated levels of loan production and growth. Merger and acquisition expenses associated with the VRB merger totaled $2,221,000 during the current quarter and are not expected to be significant in future periods. Included in the current quarter's merger and acquisition expenses are costs associated with the contractual obligations owed to a former VRB executive whom recently resigned from the Company to accept employment outside of the banking industry.

During the three months ended March 31, 2022, the Company sold a former administrative building and relocated a branch during the previous quarter resulting in a net gain on disposal of approximately $1,078,000 as noted above.

The following table presents the key components of non-interest expense for the current and prior year quarterly periods indicated:

Three months ended June 30,
(dollars in thousands) 2022 2021 Change % Change
Base salaries, net of deferred loan origination costs $ 22,169 $ 17,537 $ 4,632 26.4 %
Incentive compensation 4,282 4,322 (40) (0.9) %
Benefits and other compensation costs 6,491 5,222 1,269 24.3 %
Total salaries and benefits expense 32,942 27,081 5,861 21.6 %
Occupancy 3,996 3,700 296 8.0 %
Data processing and software 3,596 3,201 395 12.3 %
Equipment 1,453 1,207 246 20.4 %
Intangible amortization 1,702 1,431 271 18.9 %
Advertising 818 734 84 11.4 %
ATM and POS network charges 1,781 1,551 230 14.8 %
Professional fees 1,233 1,046 187 17.9 %
Telecommunications 564 564 — — %
Regulatory assessments and insurance 779 618 161 26.1 %
Merger and acquisition expenses 2,221 — 2,221 n/m
Postage 313 124 189 152.4 %
Operational loss 456 212 244 115.1 %
Courier service 486 288 198 68.8 %
Gain on sale or acquisition of foreclosed assets (98) (15) (83) 553.3 %
(Gain) loss on disposal of fixed assets 5 (426) 431 (101.2) %
Other miscellaneous expense 4,017 2,855 1,162 40.7 %
Total other non-interest expense 23,322 17,090 6,232 36.5 %
Total non-interest expense $ 56,264 $ 44,171 $ 12,093 27.4 %
Average full-time equivalent staff 1,183 1,020 163 16.0 %

Total non-interest expense increased $12,093,000 or 27.4% to $56,264,000 during the three months ended June 30, 2022 as compared to $44,171,000 for the trailing quarter ended, for reasons similar to those referenced above.

Six months ended June 30,
(dollars in thousands) 2022 2021 Change % Change
Base salaries, net of deferred loan origination costs $ 40,385 $ 33,048 $ 7,337 22.2 %
Incentive compensation 6,865 7,902 (1,037) (13.1) %
Benefits and other compensation costs 12,463 11,461 1,002 8.7 %
Total salaries and benefits expense 59,713 52,411 7,302 13.9 %
Occupancy 7,571 7,426 145 2.0 %
Data processing and software 7,109 6,403 706 11.0 %
Equipment 2,786 2,724 62 2.3 %
Intangible amortization 2,930 2,862 68 2.4 %
Advertising 1,455 1,114 341 30.6 %
ATM and POS network charges 3,156 2,797 359 12.8 %
Professional fees 2,109 1,640 469 28.6 %
Telecommunications 1,085 1,145 (60) (5.2) %
Regulatory assessments and insurance 1,499 1,230 269 21.9 %
Merger and acquisition expenses 6,253 — 6,253 n/m
Postage 541 322 219 68.0 %
Operational loss 273 421 (148) (35.2) %
Courier service 900 582 318 54.6 %
Gain on sale or acquisition of foreclosed assets (98) (66) (32) 48.5 %
Gain on disposal of fixed assets (1,073) (426) (647) 151.9 %
Other miscellaneous expense 6,502 5,204 1,298 24.9 %
Total other non-interest expense 42,998 33,378 9,620 28.8 %
Total non-interest expense $ 102,711 $ 85,789 $ 16,922 19.7 %
Average full-time equivalent staff 1,133 1,022 111 10.9 %

The changes in non-interest expense for the six months ended June 30, 2022 and 2021 are generally consistent with changes in the comparable three months periods discussed above.

Provision for Income Taxes

The Company’s effective tax rate was 27.5% for the six months ended June 30, 2022, as compared to 28.1% for the year ended December 31, 2021. Differences between the Company's effective tax rate and applicable federal and state blended statutory rate of approximately 29.6% are due to the proportion of non-taxable revenues, non-deductible expenses, and benefits from tax credits as compared to the levels of pre-tax earnings.

About TriCo Bancshares

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 and loan production offices in communities throughout 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 ATMs, 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.

Forward-Looking Statement

The statements contained herein that are not historical facts are forward-looking statements based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond our control. There can be no assurance that future developments affecting us will be the same as those anticipated by management. We caution readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. These risks and uncertainties include, but are not limited to, the following: the strength of the United States economy in general and the strength of the local economies in which we conduct operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market and monetary fluctuations on the Company's business condition and financial operating results; the impact of changes in financial services industry policies, laws and regulations; technological changes; weather, natural disasters and other catastrophic events that may or may not be caused by climate change and their effects on economic and business environments in which the Company operates; the continuing adverse impact on the U.S. economy, including the markets in which we operate due to the COVID-19 global pandemic, and the impact of a slowing U.S. economy and increased unemployment on the performance of our loan portfolio, the market value of our investment securities, the availability of sources of funding and the demand for our products; adverse developments with respect to U.S. or global economic conditions and other uncertainties, including the impact of supply chain disruptions, inflationary pressures and labor shortages on the economic recovery and our business; the impacts of international hostilities or geopolitical events; the costs or effects of mergers, acquisitions or dispositions we may make, whether we are able to obtain any required governmental approvals in connection with any such mergers, acquisitions or dispositions, and/or our ability to realize the contemplated financial business benefits associated with any such activities; the regulatory and financial impacts associated with exceeding $10 billion in total assets; the ability to execute our business plan in new lending markets; the future operating or financial performance of the Company, including our outlook for future growth and changes in the level of our nonperforming assets and charge-offs; the appropriateness of the allowance for credit losses, including the timing and effects of the implementation of the current expected credit losses model; any deterioration in values of California real estate, both residential and commercial; the effect of changes in accounting standards and practices; possible other-than-temporary impairment of securities held by us; changes in consumer spending, borrowing and savings habits; our ability to attract and maintain deposits and other sources of liquidity; changes in the financial performance and/or condition of our borrowers; our noninterest expense and the efficiency ratio; competition and innovation with respect to financial products and services by banks, financial institutions and non-traditional providers including retail businesses and technology companies; the challenges of integrating and retaining key employees; the costs and effects of litigation and of unexpected or adverse outcomes in such litigation; a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks and the cost to defend against such attacks; change to U.S. tax policies, including our effective income tax rate; the effect of a fall in stock market prices on our brokerage and wealth management businesses; the discontinuation of the London Interbank Offered Rate and other reference rates; and our ability to manage the risks involved in the foregoing. Additional factors that could cause results to differ materially from those described above can be found in our Annual Report on Form 10-K for the year ended December 31, 2021, which has been filed with the Securities and Exchange Commission (the “SEC”) and are available in the “Investor Relations” section of our website, https://www.tcbk.com/investor-relations and in other documents we file with the SEC. Annualized, pro forma, projections and estimates are not forecasts and may not reflect actual results. We undertake no obligation (and expressly disclaim any such obligation) to update or alter our forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

TRICO BANCSHARES—CONDENSED CONSOLIDATED FINANCIAL DATA

(Unaudited. Dollars in thousands, except share data)

Three months ended
June 30,<br>2022 March 31,<br>2022 December 31,<br>2021 September 30,<br>2021 June 30,<br>2021
Revenue and Expense Data
Interest income $ 86,955 $ 69,195 $ 71,024 $ 69,628 $ 68,479
Interest expense 1,909 1,271 1,241 1,395 1,396
Net interest income 85,046 67,924 69,783 68,233 67,083
Provision for (benefit from) credit losses 2,100 8,330 980 (1,435) (260)
Noninterest income:
Service charges and fees 13,044 11,696 11,277 11,265 10,930
Gain on sale of investment securities — — — — —
Other income 3,386 3,400 5,225 3,830 5,027
Total noninterest income 16,430 15,096 16,502 15,095 15,957
Noninterest expense (2):
Salaries and benefits 34,370 28,597 27,666 26,274 27,081
Occupancy and equipment 5,449 4,925 5,011 5,107 4,907
Data processing and network 5,468 5,089 5,444 5,381 4,752
Other noninterest expense 10,977 7,836 8,558 9,045 7,431
Total noninterest expense 56,264 46,447 46,679 45,807 44,171
Total income before taxes 43,112 28,243 38,626 38,956 39,129
Provision for income taxes 11,748 7,869 10,404 11,534 10,767
Net income $ 31,364 $ 20,374 $ 28,222 $ 27,422 $ 28,362
Share Data
Basic earnings per share $ 0.93 $ 0.68 $ 0.95 $ 0.92 $ 0.95
Diluted earnings per share $ 0.93 $ 0.67 $ 0.94 $ 0.92 $ 0.95
Dividends per share $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.25
Book value per common share $ 31.25 $ 32.78 $ 33.64 $ 33.05 $ 32.53
Tangible book value per common share (1) $ 21.41 $ 23.04 $ 25.80 $ 25.16 $ 24.60
Shares outstanding 33,350,974 33,837,935 29,730,424 29,714,609 29,716,294
Weighted average shares 33,561,389 30,049,919 29,723,791 29,713,558 29,718,603
Weighted average diluted shares 33,705,280 30,201,698 29,870,059 29,850,530 29,903,560
Credit Quality
Allowance for credit losses to gross loans 1.60 % 1.64 % 1.74 % 1.72 % 1.74 %
Loans past due 30 days or more $ 5,920 $ 8,402 $ 4,332 $ 10,539 $ 9,292
Total nonperforming loans $ 11,925 $ 14,088 $ 30,350 $ 28,790 $ 32,705
Total nonperforming assets $ 15,304 $ 16,995 $ 32,944 $ 31,440 $ 34,952
Loans charged-off $ 401 $ 743 $ 197 $ 1,582 $ 387
Loans recovered $ 356 $ 1,174 $ 552 $ 1,321 $ 653
Selected Financial Ratios
Return on average total assets 1.24 % 0.94 % 1.31 % 1.30 % 1.40 %
Return on average equity 11.53 % 8.19 % 11.20 % 11.02 % 11.85 %
Average yield on loans, excluding PPP 4.70 % 4.65 % 4.73 % 4.85 % 4.93 %
Average yield on interest-earning assets 3.76 % 3.46 % 3.56 % 3.57 % 3.65 %
Average rate on interest-bearing deposits 0.07 % 0.06 % 0.06 % 0.08 % 0.08 %
Average cost of total deposits 0.04 % 0.04 % 0.04 % 0.05 % 0.05 %
Average rate on borrowings & subordinated debt 3.12 % 2.27 % 1.98 % 2.02 % 2.31 %
Average rate on interest-bearing liabilities 0.15 % 0.11 % 0.11 % 0.13 % 0.13 %
Net interest margin (fully tax-equivalent) (1) 3.67 % 3.39 % 3.50 % 3.50 % 3.58 %
Loans to deposits 69.81 % 67.15 % 66.74 % 67.54 % 70.72 %
Efficiency ratio 55.45 % 55.95 % 54.10 % 54.97 % 53.19 %
Supplemental Loan Interest Income Data
Discount accretion on acquired loans $ 1,677 $ 1,323 $ 1,780 $ 2,034 $ 2,566
All other loan interest income (excluding PPP) (1) $ 67,277 $ 55,325 $ 54,930 $ 55,184 $ 54,559
Total loan interest income (excluding PPP) (1) $ 68,954 $ 56,648 $ 56,710 $ 57,218 $ 57,125

(1) Non-GAAP measure

(2) Inclusive of merger related expenses

TRICO BANCSHARES—CONDENSED CONSOLIDATED FINANCIAL DATA

(Unaudited. Dollars in thousands)

Balance Sheet Data June 30,<br>2022 March 31,<br>2022 December 31,<br>2021 September 30,<br>2021 June 30,<br>2021
Cash and due from banks $ 488,868 $ 1,035,683 $ 768,421 $ 740,236 $ 639,740
Securities, available for sale, net 2,608,771 2,365,708 2,210,876 2,098,786 1,850,547
Securities, held to maturity, net 176,794 186,748 199,759 216,979 235,778
Restricted equity securities 17,250 17,250 17,250 17,250 17,250
Loans held for sale 1,216 1,030 3,466 3,072 5,723
Loans:
Commercial real estate 4,049,893 3,832,974 3,306,054 3,222,737 3,194,336
Consumer 1,162,989 1,136,712 1,071,551 1,053,653 1,050,609
Commercial and industrial 507,685 500,882 259,355 345,027 452,069
Construction 313,646 303,960 222,281 216,680 200,714
Agriculture production 71,373 69,339 50,811 44,410 41,967
Leases 7,835 8,108 6,572 4,989 5,199
Total loans, gross 6,113,421 5,851,975 4,916,624 4,887,496 4,944,894
Allowance for credit losses (97,944) (96,049) (85,376) (84,306) (86,062)
Total loans, net 6,015,477 5,755,926 4,831,248 4,803,190 4,858,832
Premises and equipment 73,811 73,692 78,687 78,968 79,178
Cash value of life insurance 132,857 132,104 117,857 120,932 120,287
Accrued interest receivable 25,861 22,769 19,292 18,425 18,923
Goodwill 307,942 307,942 220,872 220,872 220,872
Other intangible assets 20,074 21,776 12,369 13,562 14,971
Operating leases, right-of-use 27,154 28,404 25,665 26,815 26,365
Other assets 224,536 169,296 109,025 98,943 81,899
Total assets $ 10,120,611 $ 10,118,328 $ 8,614,787 $ 8,458,030 $ 8,170,365
Deposits:
Noninterest-bearing demand deposits $ 3,604,237 $ 3,583,269 $ 2,979,882 $ 2,943,016 $ 2,843,783
Interest-bearing demand deposits 1,796,580 1,788,639 1,568,682 1,519,426 1,486,321
Savings deposits 3,028,787 2,993,873 2,521,011 2,447,706 2,337,557
Time certificates 327,171 348,696 297,584 326,674 324,392
Total deposits 8,756,775 8,714,477 7,367,159 7,236,822 6,992,053
Accrued interest payable 755 653 928 1,056 1,026
Operating lease liability 29,283 30,500 26,280 27,290 26,707
Other liabilities 155,529 126,348 112,070 107,282 85,388
Other borrowings 35,089 36,184 50,087 45,601 40,559
Junior subordinated debt 101,003 100,984 58,079 57,965 57,852
Total liabilities 9,078,434 9,009,146 7,614,603 7,476,016 7,203,585
Common stock 696,441 706,672 532,244 531,339 531,038
Retained earnings 491,705 479,868 466,959 446,948 427,575
Accum. other comprehensive income (loss) (145,969) (77,358) 981 3,727 8,167
Total shareholders’ equity $ 1,042,177 $ 1,109,182 $ 1,000,184 $ 982,014 $ 966,780
Quarterly Average Balance Data
Average loans, excluding PPP $ 5,890,578 $ 4,937,865 $ 4,759,294 $ 4,684,492 $ 4,646,188
Average interest-earning assets $ 9,330,059 $ 8,153,200 $ 7,947,798 $ 7,758,169 $ 7,544,581
Average total assets $ 10,121,714 $ 8,778,256 $ 8,546,004 $ 8,348,111 $ 8,128,674
Average deposits $ 8,743,320 $ 7,521,930 $ 7,304,659 $ 7,137,263 $ 6,943,081
Average borrowings and subordinated debt $ 136,244 $ 105,702 $ 108,671 $ 106,221 $ 98,774
Average total equity $ 1,091,454 $ 1,009,224 $ 999,764 $ 987,026 $ 960,145
Capital Ratio Data
Total risk-based capital ratio 14.1 % 15.0 % 15.4 % 15.4 % 15.3 %
Tier 1 capital ratio 12.3 % 13.1 % 14.2 % 14.2 % 14.1 %
Tier 1 common equity ratio 11.5 % 12.3 % 13.2 % 13.2 % 13.0 %
Tier 1 leverage ratio 9.3 % 10.8 % 9.9 % 9.9 % 9.9 %
Tangible capital ratio (1) 7.3 % 8.0 % 9.2 % 9.1 % 9.2 %

(1) Non-GAAP measure

TRICO BANCSHARES—NON-GAAP FINANCIAL MEASURES

(Unaudited. Dollars in thousands)

In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this press release contains certain non-GAAP financial measures. Management has presented these non-GAAP financial measures in this press release because it believes that they provide useful and comparative information to assess trends in the Company's core operations reflected in the current quarter's results, and facilitate the comparison of our performance with the performance of our peers. However, these non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP. Where applicable, comparable earnings information using GAAP financial measures is also presented. Because not all companies use the same calculations, our presentation may not be comparable to other similarly titled measures as calculated by other companies. For a reconciliation of these non-GAAP financial measures, see the tables below:

Three months ended Six months ended
(dollars in thousands) June 30,2022 March 31,2022 June 30,2021 June 30,2022 June 30,2021
Net interest margin
Acquired loans discount accretion, net:
Amount (included in interest income) 1,677 1,323 2,566 3,000 4,278
Effect on average loan yield 0.11 0.11 0.22 0.11 0.18
Effect on net interest margin (FTE) 0.07 0.07 0.14 0.03 0.12
Net interest margin (FTE) 3.67 3.39 3.58 3.54 3.66
Net interest margin less effect of acquired loan discount accretion (Non-GAAP) 3.60 3.32 3.44 3.51 3.54
PPP loans yield, net:
Amount (included in interest income) 964 1,097 3,179 2,061 9,042
Effect on net interest margin (FTE) 0.03 0.03 0.01 0.03 0.07
Net interest margin less effect of PPP loan yield (Non-GAAP) 3.65 3.36 3.57 3.51 3.59
Acquired loan discount accretion and PPP loan yield, net:
Amount (included in interest income) 2,641 2,420 5,745 5,061 13,320
Effect on net interest margin (FTE) 0.10 0.10 0.15 0.10 0.19
Net interest margin less effect of acquired loan discount accretion and PPP yields, net (Non-GAAP) 3.57 3.29 3.43 3.44 3.46

All values are in US Dollars.

Three months ended Six months ended
(dollars in thousands) June 30,2022 March 31,2022 June 30,2021 June 30,2022 June 30,2021
Pre-tax pre-provision return on average assets or equity
Net income (GAAP) 31,364 20,374 28,362 51,738 62,011
Exclude income tax expense 11,748 7,869 10,767 19,617 24,110
Exclude provision (benefit) for credit losses 2,100 8,330 (260) 10,430 (6,320)
Net income before income tax and provision expense (Non-GAAP) 45,212 36,573 38,869 81,785 79,801
Average assets (GAAP) 10,121,714 8,778,256 8,128,674 9,453,696 7,968,134
Average equity (GAAP) 1,091,454 1,009,224 960,145 1,050,566 950,460
Return on average assets (GAAP) (annualized) 1.24 0.94 1.40 1.10 1.57
Pre-tax pre-provision return on average assets (Non-GAAP) (annualized) 1.79 1.69 1.92 1.74 2.03
Return on average equity (GAAP) (annualized) 11.53 8.19 11.85 9.93 13.16
Pre-tax pre-provision return on average equity (Non-GAAP) (annualized) 16.61 14.70 16.24 15.70 16.98

All values are in US Dollars.

Three months ended Six months ended
(dollars in thousands) June 30,2022 March 31,2022 June 30,2021 June 30,2022 June 30,2021
Return on tangible common equity
Average total shareholders' equity 1,091,454 1,009,224 960,145 1,050,566 950,460
Exclude average goodwill 307,942 226,676 220,872 267,533 220,872
Exclude average other intangibles 21,040 12,604 15,687 16,845 19,264
Average tangible common equity (Non-GAAP) 762,472 769,944 723,586 766,188 710,324
Net income (GAAP) 31,364 20,374 28,362 51,738 62,011
Exclude amortization of intangible assets, net of tax effect 1,199 865 1,008 2,064 2,016
Tangible net income available to common shareholders (Non-GAAP) 32,563 21,239 29,370 53,802 64,027
Return on average equity 11.53 8.19 11.85 9.93 13.16
Return on average tangible common equity (Non-GAAP) 17.13 11.19 16.28 14.16 18.18

All values are in US Dollars.

Three months ended
(dollars in thousands) June 30,2022 March 31,2022 December 31,2021 September 30,2021 June 30,2021
Tangible shareholders' equity to tangible assets
Shareholders' equity (GAAP) 1,042,177 1,109,182 1,000,184 982,014 966,780
Exclude goodwill and other intangible assets, net 328,016 329,718 233,241 234,434 235,843
Tangible shareholders' equity (Non-GAAP) 714,161 779,464 766,943 747,580 730,937
Total assets (GAAP) 10,120,611 10,118,328 8,614,787 8,458,030 8,170,365
Exclude goodwill and other intangible assets, net 328,016 329,718 233,241 234,434 235,843
Total tangible assets (Non-GAAP) 9,792,595 9,788,610 8,381,546 8,223,596 7,934,522
Shareholders' equity to total assets (GAAP) 10.30 10.96 11.61 11.61 11.83
Tangible shareholders' equity to tangible assets (Non-GAAP) 7.29 7.96 9.15 9.09 9.21

All values are in US Dollars.

Three months ended
(dollars in thousands) June 30,<br>2022 March 31,<br>2022 December 31,<br>2021 September 30,<br>2021 June 30,<br>2021
Tangible common shareholders' equity per share
Tangible s/h equity (Non-GAAP) $714,161 $779,464 $766,943 $747,580 $730,937
Common shares outstanding at end of period 33,350,974 33,837,935 29,730,424 29,714,609 29,716,294
Common s/h equity (book value) per share (GAAP) $31.25 $32.78 $33.64 $33.05 $32.53
Tangible common shareholders' equity (tangible book value) per share (Non-GAAP) $21.41 $23.04 $25.80 $25.16 $24.60

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18

a2022q2investorpresentat

Investor Presentation Second Quarter 2022 Richard P. Smith, President & Chief Executive Officer John S. Fleshood, EVP & Chief Operating Officer Peter G. Wiese, EVP & Chief Financial Officer Exhibit 99.2

Safe Harbor Statement Investor Presentation | Second Quarter 20222 The statements contained herein that are not historical facts are forward-looking statements based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond our control. There can be no assurance that future developments affecting us will be the same as those anticipated by management. We caution readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. These risks and uncertainties include, but are not limited to, the following: the strength of the United States economy in general and the strength of the local economies in which we conduct operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market and monetary fluctuations on the Company's business condition and financial operating results; the impact of changes in financial services industry policies, laws and regulations; technological changes; weather, natural disasters and other catastrophic events that may or may not be caused by climate change and their effects on economic and business environments in which the Company operates; the continuing adverse impact on the U.S. economy, including the markets in which we operate due to the COVID-19 global pandemic, and the impact of a slowing U.S. economy and increased unemployment on the performance of our loan portfolio, the market value of our investment securities, the availability of sources of funding and the demand for our products; adverse developments with respect to U.S. or global economic conditions and other uncertainties, including the impact of supply chain disruptions, inflationary pressures and labor shortages on the economic recovery and our business; the impacts of international hostilities or geopolitical events; the costs or effects of mergers, acquisitions or dispositions we may make, whether we are able to obtain any required governmental approvals in connection with any such mergers, acquisitions or dispositions, and/or our ability to realize the contemplated financial business benefits associated with any such activities; the regulatory and financial impacts associated with exceeding $10 billion in total assets; the ability to execute our business plan in new lending markets; the future operating or financial performance of the Company, including our outlook for future growth and changes in the level of our nonperforming assets and charge-offs; the appropriateness of the allowance for credit losses, including the timing and effects of the implementation of the current expected credit losses model; any deterioration in values of California real estate, both residential and commercial; the effect of changes in accounting standards and practices; possible other-than-temporary impairment of securities held by us; changes in consumer spending, borrowing and savings habits; our ability to attract and maintain deposits and other sources of liquidity; changes in the financial performance and/or condition of our borrowers; our noninterest expense and the efficiency ratio; competition and innovation with respect to financial products and services by banks, financial institutions and non-traditional providers including retail businesses and technology companies; the challenges of integrating and retaining key employees; the costs and effects of litigation and of unexpected or adverse outcomes in such litigation; a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks and the cost to defend against such attacks; change to U.S. tax policies, including our effective income tax rate; the effect of a fall in stock market prices on our brokerage and wealth management businesses; the discontinuation of the London Interbank Offered Rate and other reference rates; and our ability to manage the risks involved in the foregoing. Additional factors that could cause results to differ materially from those described above can be found in our Annual Report on Form 10-K for the year ended December 31, 2021, which has been filed with the Securities and Exchange Commission (the “SEC”) and are available in the “Investor Relations” section of our website, https://www.tcbk.com/investor-relations and in other documents we file with the SEC. Annualized, pro forma, projections and estimates are not forecasts and may not reflect actual results. We undertake no obligation (and expressly disclaim any such obligation) to update or alter our forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

Investor Presentation | Second Quarter 20223 • Most Recent Quarter Recap • Company Overview • Lending Overview • Deposit Overview • Financials Agenda

Most Recent Quarter Highlights Investor Presentation | Second Quarter 20224 Consistent Profitability • Pre-tax pre-provision ROAA and ROAE were 1.79% and 16.61%, respectively, for the quarter ended June 30, 2022, and 1.92% and 16.24%, respectively, for the same quarter in the prior year • Our efficiency ratio was 55.4% for the quarter ended June 30, 2022, compared to 56.0% and 53.2% for the quarters ended March 31, 2022 and June 30, 2021, respectively • Adjusted for merger related expenses totaling $2.22 million in the quarter, pre-tax pre-provision ROAA would have been 1.88% and efficiency ratio would have been 53.3% Growth to Drive Revenue • Organic non-PPP net loan growth was $300.3 million, a 20.7% annualized increase over the trailing quarter, non-PPP loan growth over the trailing twelve months was $638.4 million or 13.6% • Pipelines continue to remain strong, although pull-through of loan originations appear to be slightly elevated in the current quarter • Annualized deposit growth of 1.9% in the current quarter is slower than the 7.9% growth experienced in the trailing 12-months, and the loan to deposit ratio has grown to 69.8% as compared to 66.7% at December 31, 2021 Net Interest Income and Margin • Net interest margin (FTE) of 3.67%, compared to 3.39% in the prior quarter, was influenced by the deployment of excess liquidity and the rising rate environment • The loan portfolio excluding PPP experienced growth in both volume and yield (FTE) which increased 5 basis points to 4.70% during the quarter • Net interest margin, less the effect of acquired loan discount accretion and PPP yields (non-GAAP), on a tax equivalent basis was 3.57%, an increase of 28 basis points from 3.29% in the trailing quarter Credit Quality • The allowance for credit losses to total loans was 1.60% as of June 30, 2022, compared to 1.64% as of March 31, 2022, and 1.74% as of June 30, 2021 • Nonperforming assets were reduced to $15.3 million or 0.15% of total assets at June 30, 2022 as compared to 0.43% of total assets at the same quarter of the prior year Diverse Deposit Base • Non-interest-bearing deposits comprise 41.2% of total deposits • Deposit betas remain low with the cost of total average deposits remaining at 4 basis points Capital Strategies • Consistent quarterly dividend payments with a history of periodic increases • Share repurchase program with demonstrated utilization facilitated a 1.4% decrease in shares outstanding • Strength in core earnings is key to self-financed and self-funded growth

Company Overview Investor Presentation | Second Quarter 20225 Nasdaq: TCBK Headquarters: Chico, California Stock Price*: $45.64 Market Cap.: $1.5 Billion Asset Size: $10.1 Billion Loans: $6.1 Billion Deposits: $8.8 Billion Bank Branches: 71 ATMs: 89 Bank ATMs, with access to over 37,000 network ATMs Market Area: TriCo currently serves 31 counties throughout California. * As of close of business June 30, 2022

Executive Team Investor Presentation | Second Quarter 20226 Rick Smith President & CEO TriCo since 1993 John Fleshood EVP Chief Operating Officer TriCo since 2016 Dan Bailey EVP Chief Banking Officer TriCo since 2007 Craig Carney EVP Chief Credit Officer TriCo since 1996 Peter Wiese EVP Chief Financial Officer TriCo since 2018 Judi Giem SVP Chief HR Officer TriCo since 2020 Greg Gehlmann SVP General Counsel TriCo since 2017

Positive Earnings Track Record Investor Presentation | Second Quarter 20227 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Net Income ($MM) $13.9 $15.0 $16.2 $23.2 $22.7 $23.1 $23.4 $22.9 $16.1 $7.4 $17.6 $23.6 $33.6 $28.4 $27.4 $28.2 $20.4 $31.4 Qtrly Diluted EPS $0.60 $0.65 $0.53 $0.76 $0.74 $0.75 $0.76 $0.75 $0.53 $0.25 $0.59 $0.79 $1.13 $0.95 $0.92 $0.94 $0.67 $0.93 $0.00 $0.40 $0.80 $1.20 $0 $4 $8 $12 $16 $20 $24 $28 $32 $36 Q tr ly E P S ( di lu te d) E ar ni n gs ( in M ill io ns ) July 2018 Acquired FNB Bancorp ($1.2B assets) March 2022 Acquired Valley Republic Bancorp ($1.4B assets)

Shareholder Returns Investor Presentation | Second Quarter 20228 Dividends per Share: 10.6% CAGR* Dividends as % of Earnings Return on Avg. Shareholder Equity Diluted EPS $0.15 $0.15 $0.17 $0.19 $0.22 $0.25 $0.25 $0.15 $0.17 $0.17 $0.19 $0.22 $0.25 $0.25 $0.15 $0.17 $0.17 $0.22 $0.22 $0.25 $0.15 $0.17 $0.19 $0.22 $0.22 $0.25 $0.60 $0.66 $0.70 $0.82 $0.88 $1.00 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 2016 2017 2018 2019 2020 2021 2022 Q1 Q2 Q3 Q4 31% 37% 27% 27% 41% 25% 31% 2016 2017 2018 2019 2020 2021 2022 $0.46 $0.52 $0.60 $0.74 $0.53 $1.13 $0.67 $0.41 $0.58 $0.65 $0.75 $0.25 $0.95 $0.93 $0.53 $0.51 $0.53 $0.76 $0.59 $0.92 $0.54 $0.76 $0.75 $0.79 $0.94 $1.94 $1.74 $2.54 $3.00 $2.16 $3.94 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 2016 2017 2018 2019 2020 2021 2022 Q1 Q2 Q3 Q4 9.47% 8.10% 10.75% 10.49% 7.18% 12.10% 9.93% 2016 2017 2018 2019 2020 2021 2022

Consistent Growth Investor Presentation | Second Quarter 20229 CAGR 5 yrs. 10 yrs. Total Assets 16.8% 14.9% Organic Growth and Disciplined Acquisitions • Asset Dollars in Billions.

Investor Presentation | Second Quarter 2022 Loans and Credit Quality 1010

Consistent Loan Growth Investor Presentation | Second Quarter 202211 • Q1 2021 increase includes $98MM Jumbo Mortgage pool purchase • End of period balances are presented net of fees and include LHFS. Yields based on average balance and annualized quarterly interest income. • Acquired VRB Loans of $795MM upon 3/25/2022 with a WAR of 4.31%. VRB total includes $21MM of PPP loans. $4,022 $4,111 $4,381 $4,386 $4,407 $4,443 $4,610 $4,711 $4,739 $4,859 $5,796 $6,097 $423 $426 $327 $361 $240 $151 $61 5.24% 5.44% 5.23% 5.05% 4.78% 5.09% 5.15% 4.86% 4.92% 4.96% 4.69% 4.73% 3.50% 4.50% 5.50% 6.50% $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 2018 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1-2022 Q2-2022 Non-PPP PPP Loans Loan Yield Loan Yield Excl PPP

Gross Production vs. Payoff Investor Presentation | Second Quarter 202212 • Outstanding Principal in Millions, excludes PPP • Includes Q1 2021 increase of $98MM and Q4 2020 increase of $40MM in Jumbo Mortgage pool purchases • $800MM in outstanding at close of Q1-2022 related to VRB Acquisitions ($795MM at acquisition) excluded from the chart TCBK originated nearly $1.5 billion in 2021, while facing headwinds of an increased $372 million in payoffs during 2021. In addition to the nearly $0.8 billion in non-PPP loan originations in 2020, TCBK originated over $0.4 billion in PPP loans. TCBK originated over $0.9 billion in loans in 2019, while facing headwinds of outpacing payoffs in excess of $0.6 billion. $144 $200 $229 $349 $178 $199 $165 $250 $464 $285 $303 $412 $396 $473 -$118 -$147 -$139 -$210 -$118 -$139 -$131 -$166 -$241 -$192 -$243 -$250 -$225 -$205 -$21 $14 -$15 -$14 $6 -$56 -$20 -$47 -$59 $6 -$33 -$47 $4 $30 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Origination Payoffs Balance Change net of Originations and Payoffs Originations to date in 2022 surpass all of 2020 (excluding PPP), and net draw activity exceeds amortization

$1,760 $1,534 $796 $660 $852 $828 $689 $660 $277 $448 $378 $325 $260 $201 $226 $214 $59 $70 $242 $130 $18 $31 $164 $7 $54 $98 2Q-2022 2Q-2021 2Q-2022 2Q-2021 2Q-2022 2Q-2021 2Q-2022 2Q-2021 2Q-2022 2Q-2021 2Q-2022 2Q-2021 2Q-2022 2Q-2021 2Q-2022 2Q-2021 2Q-2022 2Q-2021 C R E N on - O w n e r O cc u pi ed C R E -O w n e r O cc u pi ed M u lti fa m ily S F R 1 -4 T e rm C o m m e rc ia l & In d u st ri a l S F R H E L O C a nd J u ni or L ie ns C o n st ru ct io n A g ric u ltu re & F a rm la nd A u to & O th e r TCBK VRB Diversified Loan Portfolio Investor Presentation | Second Quarter 202213 • Dollars in millions, Net Book Value at period end, excludes LHFS; • Auto & other includes Leases; PPP Loans of $18 mln 2Q-2022 and $240 mln 2Q-2021. Commercial & Industrial includes six Municipality Loans for $16.5 mln. CRE Non-Owner Occupied 33% CRE-Owner Occupied 15% Multifamily 15% SFR 1-4 Term 12% Commercial & Industrial 7% SFR HELOC and Junior Liens 7% Construction 5% Agriculture & Farmland 5% Auto & Other 1%

$2,020 $1,551 $875 $833 $382 $322 $469 $206 $934 $666 $722 $662 $321 $203 $329 $215 $57 $68 $170 $119 $45 $43 $576 $513 $547 $360 $49 $30 $287 $203 $232 $66 $9 $9 2Q-2022 2Q-2021 2Q-2022 2Q-2021 2Q-2022 2Q-2021 2Q-2022 2Q-2021 2Q-2022 2Q-2021 2Q-2022 2Q-2021 2Q-2022 2Q-2021 2Q-2022 2Q-2021 2Q-2022 2Q-2021 CRE Non-Owner Occupied Multifamily SFR HELOC and Junior Liens Commercial & Industrial CRE-Owner Occupied SFR 1-4 Term Construction Agriculture & Farmland Auto & Other Outstanding Principal ($MM) Unfunded Commitment ($MM) Unfunded Loan Commitments Investor Presentation | Second Quarter 202214 HELOCs – by vintage, with weighted avg. coupon  Outstanding Principal and Commitments exclude unearned fees and discounts/premiums, Leases, DDA Overdraft, and Credit Cards  PPP Excluded from C&I includes for $18 million and $249 million in Outstanding Principal as of Q2 2022 and Q2 2021, respectively. 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% $0 $25 $50 $75 $100 $125 $150 $175 20222021202020192018201720162015201420132012201120102009>2009 Private Balance (MM) Unfunded (MM) WA Rate 3.68% 3.43% 4.12% 4.54% 4.80%4.68%4.63%4.71%4.64% 5.00%4.84% 4.58%4.55% 4.96%4.77%

$98 $37 $54 $59 $42 $53 $28 $13 $10 $82$82 $115 $90 $45 $49 $36 $13 $22 $24 $70 54% 25% 37% 57% 46% 60% 68% 36% 31% 54% 0% 2000% 4000% 6000% 8000% 10000% 12000% 14000% 16000% 18000% 20000% Oil & Gas Extraction Construction Consumer Real Estate Wholesale Finance and Insurance Trans and Warehouse Healthcare Retail Trade Other (13 Categories) Outstanding (mln) Unfunded (mln) C&I Utilization Investor Presentation | Second Quarter 202215  Excludes PPP loans; Outstanding Principal excludes unearned fees and discounts/premiums ($ millions) • Benefits of the VRB merger include increased actual and potential utilization rate and balance growth • Treasury management service integration is key to most of these relationships C&I Utilization by NAICS Industry: 2Q-2022 $247 $262 $208 $205 $197 $187 $206 $186 $191 $448 $469 $254 $235 $265 $273 $372 $384 $360 $353 $339 $552 $547 49.3% 52.7% 44.0% 42.9% 34.5% 32.7% 36.4% 34.5% 36.0% 44.8% 45.8% 0% 10% 20% 30% 40% 50% 60% $0 $200 $400 $600 $800 $1,000 $1,200 4Q-2019 1Q-2020 2Q-2020 3Q-2020 4Q-2020 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 Outstanding Principal ($MM) Unfunded Commitment Utilization

$875 $257 $211 $317 $461 $662 $697 5.46% 4.73% 5.00% 4.57% 4.26% 4.23% 3.97% 5.81% 5.80% 5.76% 5.94% 5.92% 5.79% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% - 100 200 300 400 500 600 700 800 900 1,000 Monthly (Floating) < 1 Year 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years > 5 Years Adjustable Loans, Principal Outstanding ($MM) Adj Wtd Avg Rate Adj Wtd Avg Rate if Repriced 6/30/2022 Loan Yield Composition Investor Presentation | Second Quarter 202216  Dollars in millions, excludes PPP as well as unearned fees and accretion/amortization therein  Wtd Avg Rate (weighted average rate) as of 6/30/2022 and based upon outstanding principal; Next Reprice signifies either the next scheduled reprice date or maturity. 99% of Floating benchmarked to Prime Predominantly benchmarked to 5 Year Treasury Fixed 43% Adjustable 43% Floating 14% 57% Adjustable + Floating

Allowance for Credit Losses Investor Presentation | Second Quarter 202217 Drivers of Change under CECL  Loan growth of $261 million Q2  Continued improvement in unemployment rate and low loss experience drive reduce reserve requirements, offset by uncertainty risks in US policy and global economy  Gross charge offs $0.401 million  Gross recoveries $0.356 million 1.64% of Total Loans 1.60% of Total Loans Reduction in Criticized & Classified loans of $17.5 million Scaled to reflect $90MM

Allowance for Credit Losses Investor Presentation | Second Quarter 202218 Allocation of Allowance by Segment  Municipal loans included in Commercial and industrial segment within the presented table

Risk Grade Migration Investor Presentation | Second Quarter 202219  Zero balance in Doubtful and Loss 87.8%87.6% 89.6% 87.2% 85.0%84.6% 9.7%9.5% 7.8% 9.3% 11.2%11.4% 1.8%2.1%1.6%2.5%2.6%2.9% 0.8%0.8%1.1%1.0%1.2%1.2% 2Q-20221Q-20224Q-20213Q-20212Q-20211Q-2021 % o f L o a n P o rt fo lio O u ts ta n d in g , b y R is k G ra d e Pass Watch Special Mention Substandard

159% 180% 193% 343% 385% 395% 342% 297% 263% 293% 281% 690% 831% 12 9% 14 5% 15 6% 13 9% 20 2% 19 1% 17 9% 18 7% 19 4% 19 7% 21 0% 21 7% 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 TCBK Peers Asset Quality Investor Presentation | Second Quarter 202220  Peer group consists of 99 closest peers in terms of asset size, range $6.0-13.7 Billion, source: BankRegData.com  NPA and NPL ratios displayed are net of guarantees Coverage Ratio: Allowance as % of Non-Performing Loans NPAs have remained below peers while loss coverage has expanded, first with the adoption of CECL and expanded during the pandemic, forward-looking qualitative factors related to inflation and gross domestic product support management’s estimate of the current level of the reserve for credit losses. Non-Performing Assets as a % of Total Assets 0.32% 0.35% 0.30% 0.28% 0.30% 0.31% 0.33% 0.38% 0.38% 0.42% 0.37% 0.38% 0.17% 0.15% 0.59% 0.61% 0.54% 0.47% 0.73% 0.53% 0.58% 0.75% 0.73% 0.68% 0.64% 0.54% 0.54% 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 TCBK

Investor Presentation | Second Quarter 2022 Deposits 2121

Deposits: Strength in Funding Investor Presentation | Second Quarter 202222 Total Deposits = $8.76 billion 98.5% of Funding Liabilities Liability Mix 06/30/2022  Peer group consists of 99 closest peers in terms of asset size, range $4.7-11.5 Billion; source: BankRegData.com  Net Loans includes LHFS and Allowance for Credit Loss; Core Deposits = Total Deposits less CDs > 250k and Brokered Deposits (0.03% Funding Cost) Non Interest- bearing Demand Deposits, 39.7% Interest-bearing Demand & Savings Deposits, 53.2% Time Deposits, 3.6% Borrowings & Subordinated Debt, 1.5% Other liabilities, 2.0% 7 8 .1 8 0 .6 8 1 .6 8 1 .6 7 6 .9 7 5 .9 7 2 .6 7 1 .8 7 0 .1 6 6 .9 6 6 .0 6 6 .4 6 8 .3 0 20 40 60 80 100 120 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 Loans to Core Deposits (%) TCBK Peers 3 3 .3 3 3 .6 3 4 .1 3 4 .9 3 9 .8 3 9 .7 3 9 .7 4 0 .3 4 0 .7 4 0 .7 4 0 .4 4 1 .1 4 1 .2 0 10 20 30 40 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 Non Interest-bearing Deposits as % of Total DepositsTCBK

Deposits: Strength in Cost of Funds Investor Presentation | Second Quarter 202223  Balances presented in millions, end of period $441 $451 $441 $419 $399 $376 $345 $328 $324 $327 $298 $349 $327 $3,121 $3,067 $3,094 $3,101 $3,363 $3,446 $3,580 $3,769 $3,824 $3,967 $4,090 $4,783 $4,825 $1,780 $1,777 $1,833 $1,883 $2,487 $2,518 $2,582 $2,767 $2,844 $2,943 $2,980 $3,583 $3,604 $5,342 $5,295 $5,367 $5,403 $6,248 $6,341 $6,506 $6,863 $6,992 $7,237 $7,367 $8,714 $8,757 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22  Successful transition and retention of acquired VRB deposits.  Industry leading cost of total deposits, driven by better than peer mix of non- interest-bearing deposits.

Financials 2424 Investor Presentation | Second Quarter 2022

1.20% 1.02% 0.89% 1.24% 1.43% 0.91% 1.43% 1.10% 2016 2017 2018 2019 2020 2021 2022 Current Operating Metrics Investor Presentation | Second Quarter 202225 Net Interest Margin (FTE) PPNR as % of Average Assets Efficiency Ratio ROAA  2022 values YTD through 6/30, annualized  Adjusted for Merger values reflect $6.253 million in merger related expenses incurred through Q2 2022, tax effected for ROAA 4.23% 4.22% 4.30% 4.47% 3.96% 3.58% 3.54% 2016 2017 2018 2019 2020 2021 2022 68.7% 65.4% 63.7% 59.7% 58.4% 53.2% 55.7% 52.3% 2016 2017 2018 2019 2020 2021 2022 Adjusted for Merger 1.88% 1.60% 1.70% 1.73% 1.94% 1.83% 1.91% 1.74% 2016 2017 2018 2019 2020 2021 2022

Well Capitalized Investor Presentation | Second Quarter 202226 Tier 1 Capital Ratio Total Risk Based Capital CET1 Ratio Tangible Capital Ratio  2022 values at quarter ended 6/30/2022 9.1% 9.3% 9.5% 10.6% 9.3% 9.2% 7.3% 2016 2017 2018 2019 2020 2021 2022 14.8% 14.1% 14.4% 15.1% 15.2% 15.4% 14.1% 2016 2017 2018 2019 2020 2021 2022 12.2% 11.7% 12.5% 13.3% 12.9% 13.2% 11.5% 2016 2017 2018 2019 2020 2021 2022 13.7% 13.2% 13.7% 14.4% 14.0% 14.2% 12.3% 2016 2017 2018 2019 2020 2021 2022

XYZ Investor Presentation | Second Quarter 202227 Pending update – no material change to format

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