TCBK 8-K
Trico Bancshares / (TCBK)
8-K
2026-01-22
For: 2026-01-22
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):
_______________________
(Exact name of registrant as specified in its charter)
_______________________
| (State or other jurisdiction of incorporation or organization) | (Commission File No.) | (I.R.S. Employer Identification No.) | ||||||
| (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 Symbol(s) | Name of each exchange on which registered | ||||||||||||
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 January 22, 2026, TriCo Bancshares (the "Company") announced its unaudited financial results as of and for the twelve months ended months ended December 31, 2025. In addition, the Company announced a new share repurchase program authorizing the repurchase of up to 2,000,000 shares of common stock. 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 8.01 Other Events
On January 22, 2026, the Company announced that it had adopted a share repurchase program. 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 9.01 Financial Statements and Exhibits
(d) Exhibits
99.1 Press release dated January 22, 2026
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
The information furnished under Item 2.02, Item 7.01, Item 8.01 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: January 22, 2026 | /s/ Peter G. Wiese | ||||
| Peter G. Wiese, Executive Vice President and Chief Financial Officer | |||||
| (Principal Financial and Accounting Officer) | |||||
Exhibit 99.1
For Immediate Release | January 22, 2026 | Chico, California | ||
 | ||
TriCo Bancshares reports fourth quarter 2025 net income of $33.6 million & authorization of new share repurchase program | ||
4Q25 Financial Highlights | ||
•Net income was $33.6 million or $1.03 per diluted share as compared to $34.0 million or $1.04 per diluted share in the trailing quarter, and an increase of $4.6 million or 15.8% from the fourth quarter of 2024
•Net interest income (FTE) was $92.5 million, an increase of $2.7 million or 2.97% over the trailing quarter; net interest margin (FTE) was 4.02% in the recent quarter, an increase of 10 basis points over 3.92% in the trailing quarter
•Loan balances increased $104.3 million or 6.0% (annualized) from the trailing quarter and increased $342.6 million or 5.1% from the same quarter of the prior year
•Deposit balances decreased $70.6 million or 3.4% (annualized) from the trailing quarter and increased $176.3 million or 2.2% from the same quarter of the prior year. One-way sell deposit balances totaled $72.9 million at quarter end, as compared to zero for both the trailing quarter and same quarter of the prior year
•Average non-interest bearing deposits grew by 2.1% (annualized) and were 31.0% of total deposits during the quarter
•Yield on average earning assets was 5.23%, a decrease of 2 basis points over the 5.25% in the trailing quarter; yield on average loans was 5.77%, an increase of 2 basis points over the 5.75% in the trailing quarter
•The average cost of total deposits was 1.29%, an decrease of 10 basis points as compared to 1.39% in the trailing quarter, and a decrease of 17 basis points from 1.46% in the same quarter of the prior year
Executive Commentary: “The strong performance trajectory which we close 2025 and start 2026 gives us good reason to be optimistic about our future. TriCo's foundation, built with exceptional employees and customers, consistently allows us to navigate a broad range of challenges and opportunities with confidence. Execution of our long-term strategies remain our primary focus, and we believe that alignment between the current economic outlook and our market positioning will be beneficial to the realization of our priorities,” said Rick Smith, Chairman and CEO. Peter Wiese, EVP and CFO added, “The expansion of both net interest income and net interest margin, despite recent Federal Funds rate cuts, was certainly a highlight of the quarter and, given the slope of the yield curve, we continue to expect incremental improvement through 2026. While we also held expense growth to a minimum during 2025 (approximately 3%), year over year expense growth in 2026 is likely to accelerate (5%), but should still allow for positive operating leverage.” | ||
| Selected Financial Highlights | |||||
•For the quarter ended December 31, 2025, the Company’s return on average assets was 1.34%, while the return on average equity was 10.02%; for the trailing quarter ended September 30, 2025, the Company’s return on average assets was 1.36%, while the return on average equity was 10.47%
•Diluted earnings per share were $1.03 for the fourth quarter of 2025, compared to $1.04 for the trailing quarter and $0.88 during the fourth quarter of 2024
•The loan to deposit ratio was 86.05% as of December 31, 2025, as compared to 84.07% for the trailing quarter end. Management seeks to maintain this ratio within a range of 83.0% to 90.0% for purposes of revenue generation enhancement.
•The efficiency ratio was 54.68% for the quarter ended December 31, 2025, as compared to 56.18% for the trailing quarter
•The provision for credit losses was $3.0 million during the quarter ended December 31, 2025, as compared to $0.7 million during the trailing quarter
•The allowance for credit losses (ACL) to total loans was 1.77% as of December 31, 2025, compared to 1.78% as of the trailing quarter end, and 1.85% as of December 31, 2024. Non-performing assets to total assets were 0.72% on December 31, 2025, as compared to 0.72% as of September 30, 2025, and 0.48% at December 31, 2024. At December 31, 2025, the ACL represented 196% of non-performing loans
The financial results reported in this document are preliminary and unaudited. Final financial results and other disclosures will be reported on Form 10-K for the period ended December 31, 2025, 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.
1
| Operating Results and Performance Ratios | ||||||||||||||
| Three months ended | |||||||||||||||||||||||
| December 31, 2025 | September 30, 2025 | ||||||||||||||||||||||
| (dollars and shares in thousands, except per share data) | $ Change | % Change | |||||||||||||||||||||
| Net interest income | $ | 92,227 | $ | 89,555 | $ | 2,672 | 3.0 | % | |||||||||||||||
| Provision for credit losses | (3,000) | (670) | (2,330) | 347.8 | % | ||||||||||||||||||
| Noninterest income | 17,168 | 18,007 | (839) | (4.7) | % | ||||||||||||||||||
| Noninterest expense | (59,819) | (60,424) | 605 | (1.0) | % | ||||||||||||||||||
| Provision for income taxes | (12,942) | (12,449) | (493) | 4.0 | % | ||||||||||||||||||
| Net income | $ | 33,634 | $ | 34,019 | $ | (385) | (1.1) | % | |||||||||||||||
| Diluted earnings per share | $ | 1.03 | $ | 1.04 | $ | (0.01) | (1.0) | % | |||||||||||||||
| Dividends per share | $ | 0.36 | $ | 0.36 | $ | — | — | % | |||||||||||||||
| Average common shares | 32,445 | 32,542 | (97) | (0.3) | % | ||||||||||||||||||
| Average diluted common shares | 32,631 | 32,723 | (92) | (0.3) | % | ||||||||||||||||||
| Return on average total assets | 1.34 | % | 1.36 | % | |||||||||||||||||||
| Return on average equity | 10.02 | % | 10.47 | % | |||||||||||||||||||
| Efficiency ratio | 54.68 | % | 56.18 | % | |||||||||||||||||||
| Three months ended December 31, | |||||||||||||||||||||||
| (dollars and shares in thousands, except per share data) | 2025 | 2024 | $ Change | % Change | |||||||||||||||||||
| Net interest income | $ | 92,227 | $ | 84,090 | $ | 8,137 | 9.7 | % | |||||||||||||||
| Provision for credit losses | (3,000) | (1,702) | (1,298) | 76.3 | % | ||||||||||||||||||
| Noninterest income | 17,168 | 16,275 | 893 | 5.5 | % | ||||||||||||||||||
| Noninterest expense | (59,819) | (59,775) | (44) | 0.1 | % | ||||||||||||||||||
| Provision for income taxes | (12,942) | (9,854) | (3,088) | 31.3 | % | ||||||||||||||||||
| Net income | $ | 33,634 | $ | 29,034 | $ | 4,600 | 15.8 | % | |||||||||||||||
| Diluted earnings per share | $ | 1.03 | $ | 0.88 | $ | 0.15 | 17.0 | % | |||||||||||||||
| Dividends per share | $ | 0.36 | $ | 0.33 | $ | 0.03 | 9.1 | % | |||||||||||||||
| Average common shares | 32,445 | 32,994 | (549) | (1.7) | % | ||||||||||||||||||
| Average diluted common shares | 32,631 | 33,162 | (531) | (1.6) | % | ||||||||||||||||||
| Return on average total assets | 1.34 | % | 1.19 | % | |||||||||||||||||||
| Return on average equity | 10.02 | % | 9.30 | % | |||||||||||||||||||
| Efficiency ratio | 54.68 | % | 59.56 | % | |||||||||||||||||||
| Twelve months ended December 31, | |||||||||||||||||||||||
| (dollars and shares in thousands, except per share data) | 2025 | 2024 | $ Change | % Change | |||||||||||||||||||
| Net interest income | $ | 350,843 | $ | 331,434 | $ | 19,409 | 5.9 | % | |||||||||||||||
| Provision for credit losses | (12,063) | (6,632) | (5,431) | 81.9 | % | ||||||||||||||||||
| Noninterest income | 68,338 | 64,407 | 3,931 | 6.1 | % | ||||||||||||||||||
| Noninterest expense | (240,959) | (234,105) | (6,854) | 2.9 | % | ||||||||||||||||||
| Provision for income taxes | (44,601) | (40,236) | (4,365) | 10.8 | % | ||||||||||||||||||
| Net income | $ | 121,558 | $ | 114,868 | $ | 6,690 | 5.8 | % | |||||||||||||||
| Diluted earnings per share | $ | 3.70 | $ | 3.46 | $ | 0.24 | 6.9 | % | |||||||||||||||
| Dividends per share | $ | 1.38 | $ | 1.32 | $ | 0.06 | 4.5 | % | |||||||||||||||
| Average common shares | 32,672 | 33,088 | (416) | (1.3) | % | ||||||||||||||||||
| Average diluted common shares | 32,855 | 33,230 | (375) | (1.1) | % | ||||||||||||||||||
| Return on average total assets | 1.23 | % | 1.18 | % | |||||||||||||||||||
| Return on average equity | 9.45 | % | 9.57 | % | |||||||||||||||||||
| Efficiency ratio | 57.48 | % | 59.14 | % | |||||||||||||||||||
2
| Balance Sheet Data | ||||||||||||||
Total loans outstanding were $7.1 billion as of December 31, 2025, an increase of $342.6 million or 5.1% over December 31, 2024, and an increase of $104.3 million or 6.0% annualized as compared to the trailing quarter ended September 30, 2025. Investments decreased by $13.7 million and $194.2 million for the three and twelve month periods ended December 31, 2025, respectively, and ended the quarter with a balance of $1.84 billion or 18.8% of total assets. Quarterly average earning assets to quarterly total average assets was 91.9% on December 31, 2025, compared to 91.8% at December 31, 2024. The loan-to-deposit ratio was 86.1% on December 31, 2025, as compared to 83.7% at December 31, 2024. The Company did not utilize brokered deposits during 2025 or 2024 and continues to rely on organic deposit customers to fund cash flow timing differences.
Total shareholders' equity increased by $23.7 million during the quarter ended December 31, 2025, as net income of $33.6 million and a $10.4 million decrease in accumulated other comprehensive losses were partially offset by $11.7 million in cash dividends on common stock and $8.9 million in share repurchase activity. As a result, the Company’s book value increased to $41.07 per share at December 31, 2025, compared to $40.12 at September 30, 2025. 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 $31.52 per share at December 31, 2025, as compared to $30.61 at September 30, 2025. Changes in the fair value of available-for-sale investment securities, net of deferred taxes, continue to create moderate levels of volatility in tangible book value per share.
| Trailing Quarter Balance Sheet Change | |||||||||||||||||||||||
| Ending balances | December 31, 2025 | September 30, 2025 | Annualized % Change | ||||||||||||||||||||
| (dollars in thousands) | $ Change | ||||||||||||||||||||||
| Total assets | $ | 9,822,063 | $ | 9,878,836 | $ | (56,773) | (2.3) | % | |||||||||||||||
| Total loans | 7,111,087 | 7,006,824 | 104,263 | 6.0 | |||||||||||||||||||
| Total investments | 1,842,417 | 1,856,133 | (13,716) | (3.0) | |||||||||||||||||||
| Total deposits | 8,263,901 | 8,334,461 | (70,560) | (3.4) | |||||||||||||||||||
| Total other borrowings | 11,713 | 17,039 | (5,326) | (125.0) | |||||||||||||||||||
Loans outstanding increased by $104.3 million or 6.0% on an annualized basis during the quarter ended December 31, 2025. During the quarter, loan originations/draws totaled approximately $502.8 million while payoffs/repayments of loans totaled $367.3 million, which compares to originations/draws and payoffs/repayments during the trailing quarter ended of $424.6 million and $377.1 million, respectively. Origination volume remains in-line in with the trajectory of historical levels, as interest rates continue to contract from the highs experienced in early 2025, and the macro-economic outlook remains optimistic for borrowers following the passage of tax and spending legislation that is expected to promote continued economic expansion. The activity within loan payoffs/repayments remained consistent with the trailing quarter and spread amongst numerous borrowers, regions and loan types.
Investment security balances decreased $13.7 million or 3.0% on an annualized basis during the quarter as a result of net prepayments/maturities of $56.7 million, and sales of $20.6 million, partially offset by net increases in the market value of securities of $14.7 million and purchases of $49.3 million. Investment security purchases were comprised of fixed rate agency mortgage-backed securities and collateralized loan obligations. While management intends to primarily utilize cash flows from the investment security portfolio and organic deposit growth to support loan growth, excess liquidity will be utilized for purchases of investment securities to support net interest income growth and net interest margin expansion.
Deposit balances decreased by $70.6 million or 3.4% annualized during the period, which is consistent with the one-way sale of deposits totaling $72.9 million as of December 31, 2025. There were no deposit sales as of any comparable quarter end.
| Average Trailing Quarter Balance Sheet Change | |||||||||||||||||||||||
| Quarterly average balances for the period ended | December 31, 2025 | September 30, 2025 | Annualized % Change | ||||||||||||||||||||
| (dollars in thousands) | $ Change | ||||||||||||||||||||||
| Total assets | $ | 9,929,582 | $ | 9,900,675 | $ | 28,907 | 1.2 | % | |||||||||||||||
| Total loans | 7,023,749 | 6,971,860 | 51,889 | 3.0 | |||||||||||||||||||
| Total investments | 1,840,956 | 1,869,394 | (28,438) | (6.1) | |||||||||||||||||||
| Total deposits | 8,376,361 | 8,361,600 | 14,761 | 0.7 | |||||||||||||||||||
| Total other borrowings | 13,705 | 17,495 | (3,790) | (86.7) | |||||||||||||||||||
| Year Over Year Balance Sheet Change | |||||||||||||||||||||||
| Ending balances | As of December 31, | % Change | |||||||||||||||||||||
| (dollars in thousands) | 2025 | 2024 | $ Change | ||||||||||||||||||||
| Total assets | $ | 9,822,063 | $ | 9,673,728 | $ | 148,335 | 1.5 | % | |||||||||||||||
| Total loans | 7,111,087 | 6,768,523 | 342,564 | 5.1 | |||||||||||||||||||
| Total investments | 1,842,417 | 2,036,610 | (194,193) | (9.5) | |||||||||||||||||||
| Total deposits | 8,263,901 | 8,087,576 | 176,325 | 2.2 | |||||||||||||||||||
| Total other borrowings | 11,713 | 89,610 | (77,897) | (86.9) | |||||||||||||||||||
3
Net Interest Income and Net Interest Margin | ||||||||||||||
The Company's yield on loans for the fourth quarter was 5.77%, an increase of 2 basis point from 5.75% as of the trailing quarter end and a decrease of 1 basis point as compared to 5.78% for the quarter ended December 31, 2024. The tax equivalent yield on the Company's investment security portfolio was 3.35% for the quarter ended December 31, 2025, a decrease of 14 basis points from the trailing quarter end of 3.49% and a decrease of 3 basis points from the 3.38% earned during the three months ended December 31, 2024. As compared to the trailing quarter, costs on interest-bearing deposits decreased by 12 basis points, while costs on interest-bearing liabilities declined by 15 basis points. The cost of total interest-bearing deposits decreased by 28 basis points, while the costs of total interest-bearing liabilities decreased by 37 basis points, respectively, between the three-month periods ended December 31, 2025 and 2024, respectively.
The FOMC cut short-term interest rates during the current quarter by 50 basis points, following a 25 basis point reduction during the third quarter. The fully tax-equivalent net interest income and net interest margin was $92.5 million and 4.02%, respectively, for the quarter ended December 31, 2025, and was $89.8 million and 3.92%, respectively, for the trailing quarter ended September 30, 2025. More specifically, the net interest rate spread improved by 13 basis points to 3.33% for the quarter ended December 31, 2025, as compared to the trailing quarter, while the net interest margin improved by 10 basis points to 4.02% over the same period.
The Company continues to manage its cost of deposits through the use of various pricing and product mix strategies. As of December 31, 2025, September 30, 2025, and December 31, 2024, deposits priced utilizing these customized strategies totaled $898.9 million, $1.0 billion, and $1.1 billion and carried weighted average rates of 3.05%, 3.33% and 3.59%, respectively.
| Three months ended | |||||||||||||||||||||||
| December 31, 2025 | September 30, 2025 | ||||||||||||||||||||||
| (dollars in thousands) | Change | % Change | |||||||||||||||||||||
| Interest income | $ | 120,147 | $ | 119,987 | $ | 160 | 0.1 | % | |||||||||||||||
| Interest expense | (27,920) | (30,432) | 2,512 | (8.3) | % | ||||||||||||||||||
Fully tax-equivalent adjustment (FTE) (1) | 260 | 262 | (2) | (0.8) | % | ||||||||||||||||||
| Net interest income (FTE) | $ | 92,487 | $ | 89,817 | $ | 2,670 | 3.0 | % | |||||||||||||||
| Net interest margin (FTE) | 4.02 | % | 3.92 | % | |||||||||||||||||||
| Acquired loans discount accretion, net: | |||||||||||||||||||||||
| Amount (included in interest income) | $ | 915 | $ | 996 | $ | (81) | (8.1) | % | |||||||||||||||
Net interest margin less effect of acquired loan discount accretion(1) | 3.98 | % | 3.88 | % | 0.10 | % | |||||||||||||||||
| Three months ended December 31, | |||||||||||||||||||||||
| (dollars in thousands) | 2025 | 2024 | Change | % Change | |||||||||||||||||||
| Interest income | $ | 120,147 | $ | 116,842 | $ | 3,305 | 2.8 | % | |||||||||||||||
| Interest expense | (27,920) | (32,752) | 4,832 | (14.8) | % | ||||||||||||||||||
Fully tax-equivalent adjustment (FTE) (1) | 260 | 266 | (6) | (2.3) | % | ||||||||||||||||||
| Net interest income (FTE) | $ | 92,487 | $ | 84,356 | $ | 8,131 | 9.6 | % | |||||||||||||||
| Net interest margin (FTE) | 4.02 | % | 3.76 | % | |||||||||||||||||||
| Acquired loans discount accretion, net: | |||||||||||||||||||||||
| Amount (included in interest income) | $ | 915 | $ | 1,129 | $ | (214) | (19.0) | % | |||||||||||||||
Net interest margin less effect of acquired loan discount accretion(1) | 3.98 | % | 3.71 | % | 0.27 | % | |||||||||||||||||
| Twelve months ended December 31, | |||||||||||||||||||||||
| (dollars in thousands) | 2025 | 2024 | Change | % Change | |||||||||||||||||||
| Interest income | $ | 470,572 | $ | 466,638 | $ | 3,934 | 0.8 | % | |||||||||||||||
| Interest expense | (119,729) | (135,204) | 15,475 | (11.4) | % | ||||||||||||||||||
Fully tax-equivalent adjustment (FTE) (1) | 1,050 | 1,085 | (35) | (3.2) | % | ||||||||||||||||||
| Net interest income (FTE) | $ | 351,893 | $ | 332,519 | $ | 19,374 | 5.8 | % | |||||||||||||||
| Net interest margin (FTE) | 3.89 | % | 3.71 | % | |||||||||||||||||||
| Acquired loans discount accretion, net: | |||||||||||||||||||||||
| Amount (included in interest income) | $ | 5,153 | $ | 4,329 | $ | 824 | 19.0 | % | |||||||||||||||
Net interest margin less effect of acquired loan discount accretion(1) | 3.83 | % | 3.66 | % | 0.17 | % | |||||||||||||||||
4
(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 and customary practice within the banking industry. See additional information related to non-GAAP measures at the back of this document.
Analysis Of Change in Net Interest Margin on Earning Assets | ||
| Three months ended | Three months ended | Three months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2025 | September 30, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Average Balance | Income/ Expense | Yield/ Rate | Average Balance | Income/ Expense | Yield/ Rate | Average Balance | Income/ Expense | Yield/ Rate | ||||||||||||||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans | $ | 7,023,749 | $ | 102,231 | 5.77 | % | $ | 6,971,860 | $ | 101,004 | 5.75 | % | $ | 6,720,732 | $ | 97,692 | 5.78 | % | |||||||||||||||||||||||||||||||||||
| Investments-taxable | 1,710,394 | 14,404 | 3.34 | % | 1,737,273 | 15,321 | 3.50 | % | 1,932,839 | 16,413 | 3.38 | % | |||||||||||||||||||||||||||||||||||||||||
Investments-nontaxable (1) | 130,562 | 1,126 | 3.42 | % | 132,121 | 1,134 | 3.41 | % | 133,598 | 1,152 | 3.43 | % | |||||||||||||||||||||||||||||||||||||||||
| Total investments | 1,840,956 | 15,530 | 3.35 | % | 1,869,394 | 16,455 | 3.49 | % | 2,066,437 | 17,565 | 3.38 | % | |||||||||||||||||||||||||||||||||||||||||
| Cash at Fed Reserve and other banks | 262,724 | 2,646 | 4.00 | % | 249,646 | 2,790 | 4.43 | % | 144,908 | 1,851 | 5.08 | % | |||||||||||||||||||||||||||||||||||||||||
| Total earning assets | 9,127,429 | 120,407 | 5.23 | % | 9,090,900 | 120,249 | 5.25 | % | 8,932,077 | 117,108 | 5.22 | % | |||||||||||||||||||||||||||||||||||||||||
| Other assets, net | 802,153 | 809,775 | 793,566 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 9,929,582 | $ | 9,900,675 | $ | 9,725,643 | |||||||||||||||||||||||||||||||||||||||||||||||
| Liabilities and shareholders’ equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 1,831,148 | $ | 6,266 | 1.36 | % | $ | 1,850,733 | $ | 6,649 | 1.43 | % | $ | 1,723,059 | $ | 5,704 | 1.32 | % | |||||||||||||||||||||||||||||||||||
| Savings deposits | 2,848,212 | 11,651 | 1.62 | % | 2,855,750 | 12,965 | 1.80 | % | 2,699,084 | 12,666 | 1.87 | % | |||||||||||||||||||||||||||||||||||||||||
| Time deposits | 1,097,570 | 9,284 | 3.36 | % | 1,107,646 | 9,587 | 3.43 | % | 1,111,024 | 11,518 | 4.12 | % | |||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing deposits | 5,776,930 | 27,201 | 1.87 | % | 5,814,129 | 29,201 | 1.99 | % | 5,533,167 | 29,888 | 2.15 | % | |||||||||||||||||||||||||||||||||||||||||
| Other borrowings | 13,705 | 1 | 0.03 | % | 17,495 | 3 | 0.07 | % | 95,202 | 1,066 | 4.45 | % | |||||||||||||||||||||||||||||||||||||||||
| Junior subordinated debt | 41,238 | 718 | 6.91 | % | 71,477 | 1,228 | 6.82 | % | 101,173 | 1,798 | 7.07 | % | |||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 5,831,873 | 27,920 | 1.90 | % | 5,903,101 | 30,432 | 2.05 | % | 5,729,542 | 32,752 | 2.27 | % | |||||||||||||||||||||||||||||||||||||||||
| Noninterest-bearing deposits | 2,599,431 | 2,547,471 | 2,585,496 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 165,974 | 160,568 | 169,083 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders’ equity | 1,332,304 | 1,289,535 | 1,241,522 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 9,929,582 | $ | 9,900,675 | $ | 9,725,643 | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest rate spread (1) (2) | 3.33 | % | 3.20 | % | 2.95 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest income and margin (1) (3) | $ | 92,487 | 4.02 | % | $ | 89,817 | 3.92 | % | $ | 84,356 | 3.76 | % | |||||||||||||||||||||||||||||||||||||||||
(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 December 31, 2025, increased $2.7 million or 3.0% to $92.5 million compared to $89.8 million during the three months ended September 30, 2025. Net interest margin totaled 4.02% for the three months ended December 31, 2025, an increase of 10 basis points from the trailing quarter. The increase in net interest income is primarily attributed to a $2 million reduction in interest expense on deposits, led by $1.3 million in benefit from savings deposit accounts. The net interest margin was further enhanced by reductions in interest expense on junior subordinated debt of $0.5 million as compared to the trailing quarter, following the early extinguishment of subordinated debt with a recorded book value of $59.9 million during the third quarter. In addition, the average balance of noninterest-bearing deposits increased by $52.0 million from the three-month average for the period ended September 30, 2025.
As compared to the same quarter in the prior year, average loan yields decreased 1 basis points from 5.78% during the three months ended December 31, 2024, to 5.77% during the three months ended December 31, 2025. The accretion of discounts from acquired loans added 5 basis points to loan yields during both quarters ended December 31, 2025 and December 31, 2024, respectively. The cost of interest-bearing deposits decreased by 28 basis points between the quarter ended December 31, 2025, and the same quarter of the prior year. In addition, the average balance of noninterest-bearing deposits increased by $13.9 million from the three-month average for the period ended December 31, 2024.
For the quarter ended December 31, 2025, the ratio of average total noninterest-bearing deposits to total average deposits was 31.0%, as compared to 30.5% and 31.8% for the quarters ended September 30, 2025 and December 31, 2024, respectively.
5
| Twelve months ended December 31, 2025 | Twelve months ended December 31, 2024 | ||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Average Balance | Income/ Expense | Yield/ Rate | Average Balance | Income/ Expense | Yield/ Rate | |||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||
| Loans | $ | 6,913,337 | $ | 397,308 | 5.75 | % | $ | 6,747,072 | $ | 390,491 | 5.79 | % | |||||||||||||||||||||||
| Investments-taxable | 1,787,112 | 60,398 | 3.38 | % | 2,008,823 | 68,434 | 3.41 | % | |||||||||||||||||||||||||||
Investments-nontaxable (1) | 132,154 | 4,551 | 3.44 | % | 136,530 | 4,700 | 3.44 | % | |||||||||||||||||||||||||||
| Total investments | 1,919,266 | 64,949 | 3.38 | % | 2,145,353 | 73,134 | 3.41 | % | |||||||||||||||||||||||||||
| Cash at Fed Reserve and other banks | 216,083 | 9,365 | 4.33 | % | 80,439 | 4,098 | 5.09 | % | |||||||||||||||||||||||||||
| Total earning assets | 9,048,686 | 471,622 | 5.21 | % | 8,972,864 | 467,723 | 5.21 | % | |||||||||||||||||||||||||||
| Other assets, net | 806,100 | 784,462 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 9,854,786 | $ | 9,757,326 | |||||||||||||||||||||||||||||||
| Liabilities and shareholders’ equity | |||||||||||||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 1,829,324 | $ | 25,212 | 1.38 | % | $ | 1,734,900 | $ | 22,998 | 1.33 | % | |||||||||||||||||||||||
| Savings deposits | 2,808,876 | 49,060 | 1.75 | % | 2,677,726 | 49,028 | 1.83 | % | |||||||||||||||||||||||||||
| Time deposits | 1,106,959 | 39,033 | 3.53 | % | 999,143 | 41,100 | 4.11 | % | |||||||||||||||||||||||||||
| Total interest-bearing deposits | 5,745,159 | 113,305 | 1.97 | % | 5,411,769 | 113,126 | 2.09 | % | |||||||||||||||||||||||||||
| Other borrowings | 35,585 | 1,065 | 2.99 | % | 294,318 | 14,706 | 5.00 | % | |||||||||||||||||||||||||||
| Junior subordinated debt | 78,604 | 5,359 | 6.82 | % | 101,139 | 7,372 | 7.29 | % | |||||||||||||||||||||||||||
| Total interest-bearing liabilities | 5,859,348 | 119,729 | 2.04 | % | 5,807,226 | 135,204 | 2.33 | % | |||||||||||||||||||||||||||
| Noninterest-bearing deposits | 2,544,718 | 2,584,904 | |||||||||||||||||||||||||||||||||
| Other liabilities | 163,761 | 165,056 | |||||||||||||||||||||||||||||||||
| Shareholders’ equity | 1,286,959 | 1,200,140 | |||||||||||||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 9,854,786 | $ | 9,757,326 | |||||||||||||||||||||||||||||||
Net interest rate spread (1) (2) | 3.17 | % | 2.88 | % | |||||||||||||||||||||||||||||||
Net interest income and margin (1) (3) | $ | 351,893 | 3.89 | % | $ | 332,519 | 3.71 | % | |||||||||||||||||||||||||||
(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 Earning Asset Composition | ||
As of December 31, 2025, the Company's loan portfolio consisted of approximately $7.1 billion in outstanding principal with a weighted average coupon rate of 5.56%. During the three-month periods ending December 31, 2025, September 30, 2025, and December 31, 2024, the weighted average coupon on loan production in the quarter was 6.31%, 6.71% and 6.94%, respectively. Included in the December 31, 2025 total loans balance are adjustable rate loans totaling $4.7 billion, of which $1.0 billion are considered floating based on the Wall Street Prime index. In addition, the Company holds certain investment securities with fair values totaling $287.7 million which are subject to repricing on not less than a quarterly basis.
Asset Quality and Credit Loss Provisioning | ||
During the three months ended December 31, 2025, the Company recorded a provision for credit losses of $3.0 million, as compared to $0.7 million during the trailing quarter, and $1.7 million during the fourth quarter of 2024.
| Three months ended | Twelve months ended | ||||||||||||||||||||||||||||
| (dollars in thousands) | December 31, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||
| Addition to allowance for credit losses | $ | 2,400 | $ | 730 | $ | 1,812 | $ | 10,318 | $ | 6,482 | |||||||||||||||||||
(Reduction) addition to reserve for unfunded loan commitments | 600 | (60) | (110) | 1,745 | 150 | ||||||||||||||||||||||||
| Total provision for credit losses | $ | 3,000 | $ | 670 | $ | 1,702 | $ | 12,063 | $ | 6,632 | |||||||||||||||||||
6
| Three months ended | Twelve months ended | ||||||||||||||||||||||||||||
| (dollars in thousands) | December 31, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||
| Balance, beginning of period | $ | 124,571 | $ | 124,455 | $ | 123,760 | $ | 125,366 | $ | 121,522 | |||||||||||||||||||
| Provision for credit losses | 2,400 | 730 | 1,812 | 10,318 | 6,482 | ||||||||||||||||||||||||
| Loans charged-off | (1,345) | (737) | (722) | (11,051) | (4,051) | ||||||||||||||||||||||||
| Recoveries of previously charged-off loans | 136 | 123 | 516 | 1,129 | 1,413 | ||||||||||||||||||||||||
| Balance, end of period | $ | 125,762 | $ | 124,571 | $ | 125,366 | $ | 125,762 | $ | 125,366 | |||||||||||||||||||
The allowance for credit losses (ACL) was $125.8 million or 1.77% of total loans as of December 31, 2025. The provision for credit losses on loans of $2.4 million recorded during the current quarter resulted, primarily, from an increase of approximately $1.6 million in reserves on collectively evaluated loans and $1.0 million to replenish specific reserves following net charge-offs on totaling $1.2 million.
The charge-offs incurred on collectively evaluated loans during the quarter ended December 31, 2025 were primarily concentrated within non-performing agriculture real-estate loans which had been identified by management as non-performing during previous quarters. Observable market valuations associated with agricultural real estate remain consistent as compared to the trailing quarter, while the stable water supply and improving commodity prices for the crops associated with collateral for these loans are reflected by improving cash flows. Management believes the provisioning for these individually analyzed relationships is sufficient relative to expected future losses, if any.
The $1.6 million recorded for general reserves is primarily attributed to net loan growth for the quarter of approximately $104.3 million. Additionally, Management notes that economic indicators through the end of the current quarter, as well as actual and forecasted trends including, but not limited to, unemployment, gross domestic product, and corporate borrowing rates continued to evidence stability and were supportive of general economic expansion, and consistent or slightly improved as compared with the trailing period ended September 30, 2025. While this is aligned with the Company's direct experiences with borrowers, Management's proactive portfolio management policies and ongoing dialogue with borrowers suggests caution continues to be warranted. Actions by the Federal Reserve to further cut rates during 2026 or stimulative policies by the Federal government may help further improve this outlook overall, but the uncertainty associated with the extent and timing of these potential reductions has inhibited a material change to monetary policy assumptions. Furthermore, political policy risks both domestic and international remain unresolved, which could quickly lead to further negative effects on domestic economic outcomes. The uncertainties related to the nature, duration and potential economic impact from tariffs, and their legal standing, continue to present challenges in correlating potential improvement of credit risks within the Company's loan portfolio. Therefore, management continues to believe that certain credit weaknesses are present in the overall economy and that it is appropriate to maintain a reserve level that incorporates such risk factors.
| (dollars in thousands) | As of December 31, 2025 | % of Loans Outstanding | As of September 30, 2025 | % of Loans Outstanding | As of December 31, 2024 | % of Loans Outstanding | ||||||||||||||||||||
| Risk Rating: | ||||||||||||||||||||||||||
| Pass | $ | 6,874,545 | 96.7 | % | $ | 6,785,679 | 96.8 | % | $ | 6,539,560 | 96.7 | % | ||||||||||||||
| Special Mention | 109,768 | 1.5 | % | 89,352 | 1.3 | % | 110,935 | 1.6 | % | |||||||||||||||||
| Substandard | 126,774 | 1.8 | % | 131,793 | 1.9 | % | 118,028 | 1.7 | % | |||||||||||||||||
| Total | $ | 7,111,087 | 100.0 | % | $ | 7,006,824 | 100.0 | % | $ | 6,768,523 | 100.0 | % | ||||||||||||||
| Classified loans to total loans | 1.78 | % | 1.88 | % | 1.74 | % | ||||||||||||||||||||
| Loans past due 30+ days to total loans | 0.53 | % | 0.65 | % | 0.48 | % | ||||||||||||||||||||
| ACL to non-performing loans | 195.84 | % | 189.76 | % | 284.30 | % | ||||||||||||||||||||
The ratio of classified loans to total loans of 1.78% as of December 31, 2025, was down 10 basis points from September 30, 2025, but increased 4 basis points from the comparative quarter ended 2024. The change in classified loans outstanding as compared to the trailing quarter represented a decrease of approximately $5.0 million.
Loans past due 30 days or more decreased by $7.8 million during the quarter ended December 31, 2025, to $37.9 million, as compared to $45.7 million at September 30, 2025. The majority of loans identified as past due are well-secured by collateral, and approximately $14.5 million are less than 90 days delinquent.
Non-performing loans decreased by $1.4 million during the quarter ended December 31, 2025 to $64.2 million as compared to $65.6 million at September 30, 2025. The credit and collateral profiles of non-performing loans remain generally consistent with the trailing quarter. As noted previously, management continues to proactively work with these borrowers to identify actionable and appropriate resolution strategies which are customary for the industries. We anticipate that these proactive strategies within agriculture commercial real estate loans will further benefit from the continued improvement in agricultural commodity prices, stable water supply, and growing crop demand. Of the $64.2 million loans designated as non-performing as of December 31, 2025, approximately $36.7 million are current or less than 30 days past due with respect to payments required under their existing loan agreements.
7
Management continues to proactively assess the repayment capacity of borrowers that will be subject to rate resets in the near term. To date this analysis as well as management's observations of loans that have experienced a rate reset, have resulted in an insignificant need to provide concessions to borrowers.
As of December 31, 2025, other real estate owned consisted of 12 properties with a carrying value of approximately $6.2 million, as compared to 10 properties with a carrying value of $5.4 million at September 30, 2025. Non-performing assets of $70.5 million at December 31, 2025, represented 0.72% of total assets, a change from $71.1 million or 0.72% and $46.9 million or 0.48% as of September 30, 2025 and December 31, 2024, respectively.
Allocation of Credit Loss Reserves by Loan Type
| As of December 31, 2025 | As of September 30, 2025 | As of December 31, 2024 | |||||||||||||||||||||||||||||||||
| (dollars in thousands) | Amount | % of Loans Outstanding | Amount | % of Loans Outstanding | Amount | % of Loans Outstanding | |||||||||||||||||||||||||||||
| Commercial real estate: | |||||||||||||||||||||||||||||||||||
| CRE - Non-Owner Occupied | $ | 40,300 | 1.61 | % | $ | 41,179 | 1.68 | % | $ | 37,229 | 1.60 | % | |||||||||||||||||||||||
| CRE - Owner Occupied | 12,712 | 1.25 | % | 11,930 | 1.15 | % | 15,747 | 1.64 | % | ||||||||||||||||||||||||||
| Multifamily | 17,327 | 1.60 | % | 15,706 | 1.50 | % | 15,913 | 1.55 | % | ||||||||||||||||||||||||||
| Farmland | 5,193 | 2.07 | % | 6,202 | 2.40 | % | 3,960 | 1.49 | % | ||||||||||||||||||||||||||
| Total commercial real estate loans | 75,532 | 1.56 | % | 75,017 | 1.57 | % | 72,849 | 1.59 | % | ||||||||||||||||||||||||||
| Consumer: | |||||||||||||||||||||||||||||||||||
| SFR 1-4 1st Liens | 11,045 | 1.31 | % | 11,022 | 1.30 | % | 14,227 | 1.65 | % | ||||||||||||||||||||||||||
| SFR HELOCs and Junior Liens | 13,264 | 3.07 | % | 12,362 | 3.07 | % | 10,411 | 2.86 | % | ||||||||||||||||||||||||||
| Other | 1,974 | 4.85 | % | 2,364 | 5.48 | % | 2,825 | 4.87 | % | ||||||||||||||||||||||||||
| Total consumer loans | 26,283 | 2.00 | % | 25,748 | 1.99 | % | 27,463 | 2.14 | % | ||||||||||||||||||||||||||
| Commercial and Industrial | 11,430 | 2.46 | % | 9,089 | 2.01 | % | 14,397 | 3.05 | % | ||||||||||||||||||||||||||
| Construction | 8,231 | 2.73 | % | 10,792 | 3.61 | % | 7,224 | 2.58 | % | ||||||||||||||||||||||||||
| Agricultural Production | 4,265 | 2.47 | % | 3,901 | 2.40 | % | 3,403 | 2.24 | % | ||||||||||||||||||||||||||
| Leases | 21 | 0.44 | % | 24 | 0.44 | % | 30 | 0.44 | % | ||||||||||||||||||||||||||
| Allowance for credit losses | 125,762 | 1.77 | % | 124,571 | 1.78 | % | 125,366 | 1.85 | % | ||||||||||||||||||||||||||
| Reserve for unfunded loan commitments | 7,745 | 7,145 | 6,000 | ||||||||||||||||||||||||||||||||
| Total allowance for credit losses | $ | 133,507 | 1.88 | % | $ | 131,716 | 1.88 | % | $ | 131,366 | |||||||||||||||||||||||||
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 are expected to be amortized over the life of the loans. As of December 31, 2025, the unamortized discount associated with acquired loans totaled $14.9 million, which, when combined with the total allowance for credit losses above, represents 2.09% of total loans.
Non-interest Income | ||
| Three months ended | |||||||||||||||||||||||
| (dollars in thousands) | December 31, 2025 | September 30, 2025 | Change | % Change | |||||||||||||||||||
| ATM and interchange fees | $ | 6,352 | $ | 6,493 | $ | (141) | (2.2) | % | |||||||||||||||
| Service charges on deposit accounts | 5,416 | 5,448 | (32) | (0.6) | % | ||||||||||||||||||
| Other service fees | 1,432 | 1,485 | (53) | (3.6) | % | ||||||||||||||||||
| Mortgage banking service fees | 429 | 430 | (1) | (0.2) | % | ||||||||||||||||||
| Change in value of mortgage servicing rights | (263) | (105) | (158) | (150.5) | % | ||||||||||||||||||
| Total service charges and fees | 13,366 | 13,751 | (385) | (2.8) | % | ||||||||||||||||||
| Increase in cash value of life insurance | 862 | 871 | (9) | (1.0) | % | ||||||||||||||||||
| Asset management and commission income | 1,970 | 1,932 | 38 | 2.0 | % | ||||||||||||||||||
| Gain on sale of loans | 432 | 327 | 105 | 32.1 | % | ||||||||||||||||||
| Lease brokerage income | 26 | 82 | (56) | (68.3) | % | ||||||||||||||||||
| Sale of customer checks | 326 | 311 | 15 | 4.8 | % | ||||||||||||||||||
| (Loss) gain on sale of investment securities | 19 | (2,124) | 2,143 | (100.9) | % | ||||||||||||||||||
| (Loss) gain on marketable equity securities | 11 | 26 | (15) | (57.7) | % | ||||||||||||||||||
| Other income | 156 | 2,831 | (2,675) | (94.5) | % | ||||||||||||||||||
| Total other non-interest income | 3,802 | 4,256 | (454) | (10.7) | % | ||||||||||||||||||
| Total non-interest income | $ | 17,168 | $ | 18,007 | $ | (839) | (4.7) | % | |||||||||||||||
8
Total non-interest income decreased $0.8 million or 4.7% to $17.2 million during the three months ended December 31, 2025, compared to $18.0 million during the quarter ended September 30, 2025. Non-interest income activity during the quarter was generally flat as compared with the trailing quarter, after excluding the prior period non-recurring gain of approximately $2.5 million in other income related to the early extinguishment of $59.9 million in subordinated debt and losses of approximately $2.1 million from the sale of $28.5 million in investment securities.
| Three months ended December 31, | |||||||||||||||||||||||
| (dollars in thousands) | 2025 | 2024 | Change | % Change | |||||||||||||||||||
| ATM and interchange fees | $ | 6,352 | $ | 6,306 | $ | 46 | 0.7 | % | |||||||||||||||
| Service charges on deposit accounts | 5,416 | 4,962 | 454 | 9.1 | % | ||||||||||||||||||
| Other service fees | 1,432 | 1,425 | 7 | 0.5 | % | ||||||||||||||||||
| Mortgage banking service fees | 429 | 434 | (5) | (1.2) | % | ||||||||||||||||||
| Change in value of mortgage servicing rights | (263) | (12) | (251) | (2,091.7) | % | ||||||||||||||||||
| Total service charges and fees | 13,366 | 13,115 | 251 | 1.9 | % | ||||||||||||||||||
| Increase in cash value of life insurance | 862 | 837 | 25 | 3.0 | % | ||||||||||||||||||
| Asset management and commission income | 1,970 | 1,584 | 386 | 24.4 | % | ||||||||||||||||||
| Gain on sale of loans | 432 | 334 | 98 | 29.3 | % | ||||||||||||||||||
| Lease brokerage income | 26 | 78 | (52) | (66.7) | % | ||||||||||||||||||
| Sale of customer checks | 326 | 300 | 26 | 8.7 | % | ||||||||||||||||||
| (Loss) gain on sale or exchange of investment securities | 19 | — | 19 | 100.0 | % | ||||||||||||||||||
| (Loss) gain on marketable equity securities | 11 | (81) | 92 | (113.6) | % | ||||||||||||||||||
| Other income | 156 | 108 | 48 | 44.4 | % | ||||||||||||||||||
| Total other non-interest income | 3,802 | 3,160 | 642 | 20.3 | % | ||||||||||||||||||
| Total non-interest income | $ | 17,168 | $ | 16,275 | $ | 893 | 5.5 | % | |||||||||||||||
Non-interest income increased $0.9 million or 5.5% to $17.2 million during the three months ended December 31, 2025, compared to $16.3 million during the comparative quarter ended December 31, 2024. Growth in deposit related transactional activities during the quarter contributed to the elevated service fees, which increased by a combined $0.5 million as compared to the equivalent period in 2024. Further, elevated activity and volume of assets under management drove an increase of $0.4 million or 24.4% in asset management and commission income for the period ended December 31, 2025, as compared to the same period in 2024.
| Twelve months ended December 31, | |||||||||||||||||||||||
| (dollars in thousands) | 2025 | 2024 | Change | % Change | |||||||||||||||||||
| ATM and interchange fees | $ | 25,541 | $ | 25,319 | $ | 222 | 0.9 | % | |||||||||||||||
| Service charges on deposit accounts | 20,967 | 19,451 | 1,516 | 7.8 | % | ||||||||||||||||||
| Other service fees | 5,761 | 5,301 | 460 | 8.7 | % | ||||||||||||||||||
| Mortgage banking service fees | 1,736 | 1,739 | (3) | (0.2) | % | ||||||||||||||||||
| Change in value of mortgage servicing rights | (560) | (480) | (80) | (16.7) | % | ||||||||||||||||||
| Total service charges and fees | 53,445 | 51,330 | 2,115 | 4.1 | % | ||||||||||||||||||
| Increase in cash value of life insurance | 3,395 | 3,257 | 138 | 4.2 | % | ||||||||||||||||||
| Asset management and commission income | 7,025 | 5,573 | 1,452 | 26.1 | % | ||||||||||||||||||
| Gain on sale of loans | 1,606 | 1,532 | 74 | 4.8 | % | ||||||||||||||||||
| Lease brokerage income | 224 | 455 | (231) | (50.8) | % | ||||||||||||||||||
| Sale of customer checks | 1,300 | 1,216 | 84 | 6.9 | % | ||||||||||||||||||
| (Loss) gain on sale or exchange of investment securities | (3,247) | (43) | (3,204) | (7,451.2) | % | ||||||||||||||||||
| (Loss) gain on marketable equity securities | 84 | 126 | (42) | (33.3) | % | ||||||||||||||||||
| Other income | 4,506 | 961 | 3,545 | 368.9 | % | ||||||||||||||||||
| Total other non-interest income | 14,893 | 13,077 | 1,816 | 13.9 | % | ||||||||||||||||||
| Total non-interest income | $ | 68,338 | $ | 64,407 | $ | 3,931 | 6.1 | % | |||||||||||||||
Non-interest income increased $3.9 million or 6.1% to $68.3 million during the twelve months ended December 31, 2025, compared to $64.4 million during the comparative twelve months ended December 31, 2024. As noted above increased balances and transaction volume in both deposits and assets under management, service charges and customer fees are elevated in the 2025 period, along with asset management and commission income. During 2025, other income increased by $3.5 million due to $2.5 million gain on early extinguishment of subordinated debt mentioned above, in addition to $1.2 million gain on life insurance benefits during the first quarter. As a partial offset, the Company incurred losses on the sale of investment securities totaling approximately $3.2 million, generating proceeds of $58.5 million.
9
Non-interest Expense | ||
| Three months ended | |||||||||||||||||||||||
| (dollars in thousands) | December 31, 2025 | September 30, 2025 | Change | % Change | |||||||||||||||||||
| Base salaries, net of deferred loan origination costs | $ | 25,048 | $ | 25,340 | $ | (292) | (1.2) | % | |||||||||||||||
| Incentive compensation | 6,002 | 5,351 | 651 | 12.2 | % | ||||||||||||||||||
| Benefits and other compensation costs | 5,851 | 7,038 | (1,187) | (16.9) | % | ||||||||||||||||||
| Total salaries and benefits expense | 36,901 | 37,729 | (828) | (2.2) | % | ||||||||||||||||||
| Occupancy | 4,515 | 4,388 | 127 | 2.9 | % | ||||||||||||||||||
| Data processing and software | 5,363 | 4,838 | 525 | 10.9 | % | ||||||||||||||||||
| Equipment | 1,417 | 1,269 | 148 | 11.7 | % | ||||||||||||||||||
| Intangible amortization | 482 | 482 | — | — | % | ||||||||||||||||||
| Advertising | 774 | 647 | 127 | 19.6 | % | ||||||||||||||||||
| ATM and POS network charges | 1,981 | 1,911 | 70 | 3.7 | % | ||||||||||||||||||
| Professional fees | 1,375 | 1,842 | (467) | (25.4) | % | ||||||||||||||||||
| Telecommunications | 476 | 503 | (27) | (5.4) | % | ||||||||||||||||||
| Regulatory assessments and insurance | 1,319 | 1,282 | 37 | 2.9 | % | ||||||||||||||||||
| Postage | 382 | 353 | 29 | 8.2 | % | ||||||||||||||||||
| Operational loss | 413 | 544 | (131) | (24.1) | % | ||||||||||||||||||
| Courier service | 575 | 577 | (2) | (0.3) | % | ||||||||||||||||||
| (Gain) loss on sale or acquisition of foreclosed assets | 257 | — | 257 | 100.0 | % | ||||||||||||||||||
| (Gain) loss on disposal of fixed assets | 6 | 21 | (15) | (71.4) | % | ||||||||||||||||||
| Other miscellaneous expense | 3,583 | 4,038 | (455) | (11.3) | % | ||||||||||||||||||
| Total other non-interest expense | 22,918 | 22,695 | 223 | 1.0 | % | ||||||||||||||||||
| Total non-interest expense | $ | 59,819 | $ | 60,424 | $ | (605) | (1.0) | % | |||||||||||||||
| Average full-time equivalent staff | 1,135 | 1,154 | (19) | (1.6) | % | ||||||||||||||||||
Total non-interest expense for the quarter ended December 31, 2025, decreased $0.6 million or 1.0% to $59.8 million as compared to $60.4 million during the trailing quarter ended September 30, 2025. Total salaries and benefits expense, the largest non-interest expense component, decreased by $0.8 million or 2.2%, in line with the overall reduction in FTEs during the period and the curtailment of benefits only allocated to those employed as of the last day of the fiscal year. Changes in other non-interest expense line items were mixed, but essentially flat on a net basis for the quarter ended December 31, 2025 with an increase of $0.2 million.
| Three months ended December 31, | |||||||||||||||||||||||
| (dollars in thousands) | 2025 | 2024 | Change | % Change | |||||||||||||||||||
| Base salaries, net of deferred loan origination costs | $ | 25,048 | $ | 24,583 | $ | 465 | 1.9 | % | |||||||||||||||
| Incentive compensation | 6,002 | 4,568 | 1,434 | 31.4 | % | ||||||||||||||||||
| Benefits and other compensation costs | 5,851 | 6,175 | (324) | (5.2) | % | ||||||||||||||||||
| Total salaries and benefits expense | 36,901 | 35,326 | 1,575 | 4.5 | % | ||||||||||||||||||
| Occupancy | 4,515 | 4,206 | 309 | 7.3 | % | ||||||||||||||||||
| Data processing and software | 5,363 | 5,493 | (130) | (2.4) | % | ||||||||||||||||||
| Equipment | 1,417 | 1,364 | 53 | 3.9 | % | ||||||||||||||||||
| Intangible amortization | 482 | 1,030 | (548) | (53.2) | % | ||||||||||||||||||
| Advertising | 774 | 1,118 | (344) | (30.8) | % | ||||||||||||||||||
| ATM and POS network charges | 1,981 | 1,791 | 190 | 10.6 | % | ||||||||||||||||||
| Professional fees | 1,375 | 1,747 | (372) | (21.3) | % | ||||||||||||||||||
| Telecommunications | 476 | 477 | (1) | (0.2) | % | ||||||||||||||||||
| Regulatory assessments and insurance | 1,319 | 1,300 | 19 | 1.5 | % | ||||||||||||||||||
| Postage | 382 | 346 | 36 | 10.4 | % | ||||||||||||||||||
| Operational loss | 413 | 482 | (69) | (14.3) | % | ||||||||||||||||||
| Courier service | 575 | 538 | 37 | 6.9 | % | ||||||||||||||||||
| (Gain) loss on sale or acquisition of foreclosed assets | 257 | (61) | 318 | (521.3) | % | ||||||||||||||||||
| (Gain) loss on disposal of fixed assets | 6 | 7 | (1) | (14.3) | % | ||||||||||||||||||
| Other miscellaneous expense | 3,583 | 4,611 | (1,028) | (22.3) | % | ||||||||||||||||||
| Total other non-interest expense | 22,918 | 24,449 | (1,531) | (6.3) | % | ||||||||||||||||||
| Total non-interest expense | $ | 59,819 | $ | 59,775 | $ | 44 | 0.1 | % | |||||||||||||||
| Average full-time equivalent staff | 1,135 | 1,172 | (37) | (3.2) | % | ||||||||||||||||||
10
Total non-interest expense increased $0.04 million or 0.1% to $59.8 million during the three months ended December 31, 2025, as compared to $59.8 million for the quarter ended December 31, 2024. Total salaries and benefits expense increased by $1.6 million or 4.5%, led by incentive compensation cost increases of $1.4 million, reflecting elevated levels of loan production and overall Bank performance during the fourth quarter of 2025, as compared to 2024. Other non-interest expense line items generally evidenced broad based incremental improvements for the quarter ended December 31, 2025, resulting in a net decrease of $1.5 million, led by other miscellaneous expense declines of $1.0 million, largely from fewer expenses related to real estate owned and business travel.
| Twelve months ended December 31, | |||||||||||||||||||||||
| (dollars in thousands) | 2025 | 2024 | Change | % Change | |||||||||||||||||||
| Base salaries, net of deferred loan origination costs | $ | 101,546 | $ | 96,862 | $ | 4,684 | 4.8 | % | |||||||||||||||
| Incentive compensation | 20,614 | 16,897 | 3,717 | 22.0 | % | ||||||||||||||||||
| Benefits and other compensation costs | 27,611 | 26,822 | 789 | 2.9 | % | ||||||||||||||||||
| Total salaries and benefits expense | 149,771 | 140,581 | 9,190 | 6.5 | % | ||||||||||||||||||
| Occupancy | 17,180 | 16,411 | 769 | 4.7 | % | ||||||||||||||||||
| Data processing and software | 20,218 | 20,952 | (734) | (3.5) | % | ||||||||||||||||||
| Equipment | 5,159 | 5,424 | (265) | (4.9) | % | ||||||||||||||||||
| Intangible amortization | 1,961 | 4,120 | (2,159) | (52.4) | % | ||||||||||||||||||
| Advertising | 3,433 | 3,851 | (418) | (10.9) | % | ||||||||||||||||||
| ATM and POS network charges | 7,586 | 7,151 | 435 | 6.1 | % | ||||||||||||||||||
| Professional fees | 6,402 | 6,794 | (392) | (5.8) | % | ||||||||||||||||||
| Telecommunications | 1,980 | 2,053 | (73) | (3.6) | % | ||||||||||||||||||
| Regulatory assessments and insurance | 5,181 | 4,951 | 230 | 4.6 | % | ||||||||||||||||||
| Postage | 1,440 | 1,329 | 111 | 8.4 | % | ||||||||||||||||||
| Operational loss | 1,651 | 1,681 | (30) | (1.8) | % | ||||||||||||||||||
| Courier service | 2,184 | 2,119 | 65 | 3.1 | % | ||||||||||||||||||
| (Gain) loss on sale or acquisition of foreclosed assets | 254 | (73) | 327 | (447.9) | % | ||||||||||||||||||
| (Gain) loss on disposal of fixed assets | 117 | 19 | 98 | 515.8 | % | ||||||||||||||||||
| Other miscellaneous expense | 16,442 | 16,742 | (300) | (1.8) | % | ||||||||||||||||||
| Total other non-interest expense | 91,188 | 93,524 | (2,336) | (2.5) | % | ||||||||||||||||||
| Total non-interest expense | $ | 240,959 | $ | 234,105 | $ | 6,854 | 2.9 | % | |||||||||||||||
| Average full-time equivalent staff | 1,164 | 1,170 | (6) | (0.5) | % | ||||||||||||||||||
Non-interest expense increased $6.9 million or 2.9% to $241.0 million during the twelve months ended December 31, 2025, as compared to $234.1 million for the twelve months ended December 31, 2024. The largest component was salaries and benefits expense which increased $9.2 million or 6.5% to $149.8 million as compared to 2024, attributed to a combination of routine merit increases, increased incentive compensation from elevated levels of both loan and deposit production, and targeted strategic hiring. Other non-interest expense line items evidenced broad based but incremental decreases, driving a net decrease of $2.3 million year over year. For the year ended 2026, Management anticipates that total non-interest expenses will increase by approximately 5% as compared to the 2.9% experienced in the 2025 year.
Provision for Income Taxes | ||
The Company’s effective tax rate was 27.8% for the quarter ended December 31, 2025, as compared to 26.8% for the quarter ended September 30, 2025, and 25.9% for the year ended December 31, 2024. 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.
Share Repurchase Program | ||
The Company's Board of Directors approved the authorization to repurchase up to 2,000,000 shares of the Company’s common stock, no par value per share which approximates 6.2% of the currently outstanding common shares. The Company’s 2025 Share Repurchase Program replaces and supersedes the current 2021 Share Repurchase Program which has been terminated. Under the new program, management is authorized to repurchase shares at its discretion through Rule 10b5-1 plans, open market purchases, privately negotiated transactions, block purchases or otherwise in a manner that is intended to comply with applicable federal securities laws, including Rule 10b-18 of the Securities Exchange Act of 1934. The Board may suspend or discontinue the program at any time. Therefore, the total value of the shares to be purchased under the program is subject to change. Based on the closing price of the Company's stock on January 20, 2026, of $48.55, the repurchase of all shares authorized under the 2025 Share Repurchase Program would represent approximately $97.1 million in value.
11
Investor Contact | ||
Peter G. Wiese, EVP & CFO, (530) 898-0300
About TriCo Bancshares | ||
Forward-Looking Statements | ||
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 us. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond our control. 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: macroeconomic, geopolitical, and other challenges and uncertainties, including those related to actual or potential policies and actions from the U.S. administration, such as tariffs and reciprocal actions by other countries or regions and their ultimate impact on us, our customers, financial markets, and the overall U.S. and global economies; the uncertainty of rapidly evolving and changing U.S. trade policies and practices; inflation/deflation, interest rate, market and monetary fluctuations/volatility; increases in unemployment rates; slowing economic growth or recession in the U.S. and other countries or regions; the impact of any future federal government shutdown and uncertainty regarding the federal government’s debt limit; the impact of changes in financial services industry policies, laws and regulations; regulatory restrictions or adverse regulatory findings affecting our ability to successfully market and price our products to consumers; systemic or non-systemic bank failures or crises and any related impact on depositor behavior or investor sentiment; the impacts of international hostilities, wars, terrorism or geopolitical events; risks related to the sufficiency of liquidity, including our ability to attract and maintain deposits; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learning; extreme weather, natural disasters and other catastrophic events and their effects on our customers and the economic and business environments in which we operate; current and future economic and market conditions of the local economies in which we conduct operations; declines in housing and commercial real estate prices and changes in the financial performance and/or condition of our borrowers; the market value of our investment securities and possible other-than-temporary impairment of securities held by us due to changes in credit quality or rates; the availability of, and cost of, sources of funding and the demand for our products; the possibility that our recorded goodwill could become impaired, which may have an adverse impact on our earnings and capital; the costs or effects of mergers, acquisitions or dispositions we may make, as well as whether we are able to obtain any required governmental approvals in connection with any such activities, or identify and complete favorable transactions in the future, and/or realize the anticipated financial and business benefits; the volatility of the stock market and its impact on our stock price and our ability to conduct acquisitions; the regulatory and financial impacts associated with exceeding $10 billion in total assets; the ability to execute our business plan in new markets; our future operating or financial performance, including our outlook for future growth and our ability to control expenses; changes in the level and direction of our nonperforming assets and charge-offs and the appropriateness of the allowance for credit losses; the effectiveness of us managing the mix of earning assets and in improving, resolving or liquidating lower-quality assets; changes in accounting standards and practices; changes in consumer spending, borrowing and savings habits; the effects of changes in the level or cost of checking or savings account deposits on our funding costs and net interest margin; the impact of alternative currencies such as stablecoin and other cryptocurrencies on our ability to attract deposits; increasing noninterest expense and its impact on our financial performance; competition and innovation with respect to financial products and services by banks, financial institutions and non-traditional competitors including retail businesses and technology companies; potential changes to loss allocations between financial institutions and customers, including for losses incurred from the use of our products and services, including electronic payments and payment of checks, that were authorized by the customer but induced by fraud; the challenges of attracting, integrating and retaining key employees; the impact of the 2023 cyber security ransomware incident, including the pending litigation, on our operations and reputation; the vulnerability of our operational or security systems or infrastructure, the systems of third- and fourth-party vendors or other service providers with whom we contract, and our customers to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and data/security breaches and the cost to defend against and respond to such incidents; increased data security risks due to work from home arrangements and email vulnerability; failure to safeguard personal information, and any resulting litigation; the effect of a fall in stock market prices on our brokerage and wealth management businesses; the effectiveness of our risk management framework and quantitative models; the emergence or continuation of widespread health emergencies or pandemics; potential judgments, orders, settlements, penalties, fines and reputational damage resulting from pending or future litigation and regulatory investigations, proceedings and enforcement actions; and our ability to manage the risks involved in the foregoing. There can be no assurance that future developments affecting us will be the same as those anticipated by management. Additional factors that could cause results to differ materially from those described above can be found in our filings with the U.S. Securities and Exchange Commission, including without limitation the “Risk Factors” Section of TriCo’s Annual Report on Form 10-K for the year ended December 31, 2024, Such filings are also available in the “Investor Relations” section of our website, https://www.tcbk.com/investor-relations. 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.
12
TriCo Bancshares—Condensed Consolidated Financial Data (unaudited) | ||
| (dollars in thousands, except per share data) | Three months ended | ||||||||||||||||||||||||||||
| December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | |||||||||||||||||||||||||
| Revenue and Expense Data | |||||||||||||||||||||||||||||
| Interest income | $ | 120,147 | $ | 119,987 | $ | 116,361 | $ | 114,077 | $ | 116,842 | |||||||||||||||||||
| Interest expense | 27,920 | 30,432 | 29,842 | 31,535 | 32,752 | ||||||||||||||||||||||||
| Net interest income | 92,227 | 89,555 | 86,519 | 82,542 | 84,090 | ||||||||||||||||||||||||
| Provision for credit losses | 3,000 | 670 | 4,665 | 3,728 | 1,702 | ||||||||||||||||||||||||
| Noninterest income: | |||||||||||||||||||||||||||||
| Service charges and fees | 13,366 | 13,751 | 13,650 | 12,678 | 13,115 | ||||||||||||||||||||||||
| (Loss) gain on sale or exchange of investment securities | 19 | (2,124) | 4 | (1,146) | — | ||||||||||||||||||||||||
| Other income | 3,783 | 6,380 | 3,436 | 4,541 | 3,160 | ||||||||||||||||||||||||
| Total noninterest income | 17,168 | 18,007 | 17,090 | 16,073 | 16,275 | ||||||||||||||||||||||||
| Noninterest expense: | |||||||||||||||||||||||||||||
| Salaries and benefits | 36,901 | 37,729 | 38,286 | 36,855 | 35,326 | ||||||||||||||||||||||||
| Occupancy and equipment | 5,932 | 5,657 | 5,389 | 5,361 | 5,570 | ||||||||||||||||||||||||
| Data processing and network | 7,344 | 6,749 | 6,802 | 6,909 | 7,284 | ||||||||||||||||||||||||
| Other noninterest expense | 9,642 | 10,289 | 10,654 | 10,460 | 11,595 | ||||||||||||||||||||||||
| Total noninterest expense | 59,819 | 60,424 | 61,131 | 59,585 | 59,775 | ||||||||||||||||||||||||
| Total income before taxes | 46,576 | 46,468 | 37,813 | 35,302 | 38,888 | ||||||||||||||||||||||||
| Provision for income taxes | 12,942 | 12,449 | 10,271 | 8,939 | 9,854 | ||||||||||||||||||||||||
| Net income | $ | 33,634 | $ | 34,019 | $ | 27,542 | $ | 26,363 | $ | 29,034 | |||||||||||||||||||
| Share Data | |||||||||||||||||||||||||||||
| Basic earnings per share | $ | 1.04 | $ | 1.04 | $ | 0.84 | $ | 0.80 | $ | 0.88 | |||||||||||||||||||
| Diluted earnings per share | $ | 1.03 | $ | 1.04 | $ | 0.84 | $ | 0.80 | $ | 0.88 | |||||||||||||||||||
| Dividends per share | $ | 0.36 | $ | 0.36 | $ | 0.33 | $ | 0.33 | $ | 0.33 | |||||||||||||||||||
| Book value per common share | $ | 41.07 | $ | 40.12 | $ | 38.92 | $ | 38.17 | $ | 37.03 | |||||||||||||||||||
| Tangible book value per common share (1) | $ | 31.52 | $ | 30.61 | $ | 29.40 | $ | 28.73 | $ | 27.60 | |||||||||||||||||||
| Shares outstanding | 32,334,974 | 32,506,880 | 32,550,264 | 32,892,488 | 32,970,425 | ||||||||||||||||||||||||
| Weighted average common shares | 32,444,684 | 32,542,401 | 32,757,378 | 32,952,541 | 32,993,975 | ||||||||||||||||||||||||
| Weighted average diluted common shares | 32,630,819 | 32,723,358 | 32,935,750 | 33,129,161 | 33,161,715 | ||||||||||||||||||||||||
| Credit Quality | |||||||||||||||||||||||||||||
| Allowance for credit losses to gross loans | 1.77 | % | 1.78 | % | 1.79 | % | 1.88 | % | 1.85 | % | |||||||||||||||||||
| Loans past due 30 days or more | $ | 37,931 | $ | 45,712 | $ | 42,965 | $ | 44,753 | $ | 32,711 | |||||||||||||||||||
| Total nonperforming loans | $ | 64,218 | $ | 65,647 | $ | 64,783 | $ | 54,854 | $ | 44,096 | |||||||||||||||||||
| Total nonperforming assets | $ | 70,464 | $ | 71,077 | $ | 67,466 | $ | 57,539 | $ | 46,882 | |||||||||||||||||||
| Loans charged-off | $ | 1,345 | $ | 737 | $ | 8,595 | $ | 374 | $ | 722 | |||||||||||||||||||
| Loans recovered | $ | 136 | $ | 123 | $ | 102 | $ | 768 | $ | 516 | |||||||||||||||||||
| Selected Financial Ratios | |||||||||||||||||||||||||||||
| Return on average total assets | 1.34 | % | 1.36 | % | 1.13 | % | 1.09 | % | 1.19 | % | |||||||||||||||||||
| Return on average equity | 10.02 | % | 10.47 | % | 8.68 | % | 8.54 | % | 9.30 | % | |||||||||||||||||||
| Average yield on loans | 5.77 | % | 5.75 | % | 5.76 | % | 5.71 | % | 5.78 | % | |||||||||||||||||||
| Average yield on interest-earning assets | 5.23 | % | 5.25 | % | 5.21 | % | 5.15 | % | 5.22 | % | |||||||||||||||||||
| Average rate on interest-bearing deposits | 1.87 | % | 1.99 | % | 1.97 | % | 2.06 | % | 2.15 | % | |||||||||||||||||||
| Average cost of total deposits | 1.29 | % | 1.39 | % | 1.37 | % | 1.43 | % | 1.46 | % | |||||||||||||||||||
| Average cost of total deposits and other borrowings | 1.29 | % | 1.38 | % | 1.37 | % | 1.46 | % | 1.50 | % | |||||||||||||||||||
| Average rate on borrowings & subordinated debt | 5.19 | % | 5.49 | % | 5.84 | % | 5.68 | % | 5.80 | % | |||||||||||||||||||
| Average rate on interest-bearing liabilities | 1.90 | % | 2.05 | % | 2.05 | % | 2.18 | % | 2.27 | % | |||||||||||||||||||
| Net interest margin (fully tax-equivalent) (1) | 4.02 | % | 3.92 | % | 3.88 | % | 3.73 | % | 3.76 | % | |||||||||||||||||||
| Loans to deposits | 86.05 | % | 84.07 | % | 83.08 | % | 83.13 | % | 83.69 | % | |||||||||||||||||||
| Efficiency ratio | 54.68 | % | 56.18 | % | 59.00 | % | 60.42 | % | 59.56 | % | |||||||||||||||||||
| Supplemental Loan Interest Income Data | |||||||||||||||||||||||||||||
| Discount accretion on acquired loans | $ | 915 | $ | 996 | $ | 1,247 | $ | 1,995 | $ | 1,129 | |||||||||||||||||||
| All other loan interest income (1) | $ | 101,316 | $ | 100,008 | $ | 97,448 | $ | 93,383 | $ | 96,563 | |||||||||||||||||||
| Total loan interest income (1) | $ | 102,231 | $ | 101,004 | $ | 98,695 | $ | 95,378 | $ | 97,692 | |||||||||||||||||||
(1) Non-GAAP measure
13
TriCo Bancshares—Condensed Consolidated Financial Data (unaudited) | ||
| (dollars in thousands, except per share data) | |||||||||||||||||||||||||||||
| Balance Sheet Data | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||
| Cash and due from banks | $ | 157,014 | $ | 298,820 | $ | 314,268 | $ | 308,250 | $ | 144,956 | |||||||||||||||||||
| Securities, available for sale, net | 1,734,623 | 1,743,437 | 1,818,032 | 1,854,998 | 1,907,494 | ||||||||||||||||||||||||
| Securities, held to maturity, net | 90,544 | 95,446 | 101,672 | 106,868 | 111,866 | ||||||||||||||||||||||||
| Restricted equity securities | 17,250 | 17,250 | 17,250 | 17,250 | 17,250 | ||||||||||||||||||||||||
| Loans held for sale | 2,695 | 2,785 | 1,577 | 2,028 | 709 | ||||||||||||||||||||||||
| Loans: | |||||||||||||||||||||||||||||
| Commercial real estate | 4,853,762 | 4,793,394 | 4,730,732 | 4,634,446 | 4,577,632 | ||||||||||||||||||||||||
| Consumer | 1,314,610 | 1,293,909 | 1,288,691 | 1,279,878 | 1,281,059 | ||||||||||||||||||||||||
| Commercial and industrial | 464,428 | 453,221 | 467,564 | 457,189 | 471,271 | ||||||||||||||||||||||||
| Construction | 301,045 | 298,774 | 304,920 | 298,319 | 279,933 | ||||||||||||||||||||||||
| Agriculture production | 172,494 | 162,338 | 161,457 | 144,588 | 151,822 | ||||||||||||||||||||||||
| Leases | 4,748 | 5,188 | 5,629 | 6,354 | 6,806 | ||||||||||||||||||||||||
| Total loans, gross | 7,111,087 | 7,006,824 | 6,958,993 | 6,820,774 | 6,768,523 | ||||||||||||||||||||||||
| Allowance for credit losses | (125,762) | (124,571) | (124,455) | (128,423) | (125,366) | ||||||||||||||||||||||||
| Total loans, net | 6,985,325 | 6,882,253 | 6,834,538 | 6,692,351 | 6,643,157 | ||||||||||||||||||||||||
| Premises and equipment | 69,724 | 70,509 | 70,092 | 70,475 | 70,287 | ||||||||||||||||||||||||
| Cash value of life insurance | 137,253 | 136,391 | 135,520 | 134,678 | 140,149 | ||||||||||||||||||||||||
| Accrued interest receivable | 33,652 | 32,126 | 32,534 | 32,536 | 34,810 | ||||||||||||||||||||||||
| Goodwill | 304,442 | 304,442 | 304,442 | 304,442 | 304,442 | ||||||||||||||||||||||||
| Other intangible assets | 4,471 | 4,953 | 5,435 | 5,918 | 6,432 | ||||||||||||||||||||||||
| Operating leases, right-of-use | 25,505 | 25,917 | 22,158 | 22,806 | 23,529 | ||||||||||||||||||||||||
| Other assets | 259,565 | 264,507 | 266,465 | 266,999 | 268,647 | ||||||||||||||||||||||||
| Total assets | $ | 9,822,063 | $ | 9,878,836 | $ | 9,923,983 | $ | 9,819,599 | $ | 9,673,728 | |||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||||
| Noninterest-bearing demand deposits | $ | 2,594,032 | $ | 2,544,306 | $ | 2,559,788 | $ | 2,539,109 | $ | 2,548,613 | |||||||||||||||||||
| Interest-bearing demand deposits | 1,784,769 | 1,836,550 | 1,826,041 | 1,778,615 | 1,758,629 | ||||||||||||||||||||||||
| Savings deposits | 2,775,058 | 2,847,168 | 2,879,212 | 2,777,840 | 2,657,849 | ||||||||||||||||||||||||
| Time certificates | 1,110,042 | 1,106,437 | 1,110,768 | 1,109,768 | 1,122,485 | ||||||||||||||||||||||||
| Total deposits | 8,263,901 | 8,334,461 | 8,375,809 | 8,205,332 | 8,087,576 | ||||||||||||||||||||||||
| Accrued interest payable | 8,795 | 8,241 | 10,172 | 9,685 | 11,501 | ||||||||||||||||||||||||
| Operating lease liability | 27,278 | 27,683 | 23,965 | 24,657 | 25,437 | ||||||||||||||||||||||||
| Other liabilities | 141,137 | 145,869 | 128,162 | 131,478 | 137,506 | ||||||||||||||||||||||||
| Other borrowings | 11,713 | 17,039 | 17,788 | 91,706 | 89,610 | ||||||||||||||||||||||||
| Junior subordinated debt | 41,238 | 41,238 | 101,264 | 101,222 | 101,191 | ||||||||||||||||||||||||
| Total liabilities | 8,494,062 | 8,574,531 | 8,657,160 | 8,564,080 | 8,452,821 | ||||||||||||||||||||||||
| Common stock | 682,362 | 685,594 | 685,489 | 692,500 | 693,462 | ||||||||||||||||||||||||
| Retained earnings | 740,244 | 723,668 | 702,690 | 693,383 | 679,907 | ||||||||||||||||||||||||
| Accumulated other comprehensive loss, net of tax | (94,605) | (104,957) | (121,356) | (130,364) | (152,462) | ||||||||||||||||||||||||
| Total shareholders’ equity | $ | 1,328,001 | $ | 1,304,305 | $ | 1,266,823 | $ | 1,255,519 | $ | 1,220,907 | |||||||||||||||||||
| Quarterly Average Balance Data | |||||||||||||||||||||||||||||
| Average loans | $ | 7,023,749 | $ | 6,971,860 | $ | 6,878,186 | $ | 6,776,188 | $ | 6,720,732 | |||||||||||||||||||
| Average interest-earning assets | $ | 9,127,429 | $ | 9,090,900 | $ | 8,973,959 | $ | 9,007,447 | $ | 8,932,077 | |||||||||||||||||||
| Average total assets | $ | 9,929,582 | $ | 9,900,675 | $ | 9,778,834 | $ | 9,808,216 | $ | 9,725,643 | |||||||||||||||||||
| Average deposits | $ | 8,376,361 | $ | 8,361,600 | $ | 8,222,982 | $ | 8,195,793 | $ | 8,118,663 | |||||||||||||||||||
| Average borrowings and subordinated debt | $ | 54,943 | $ | 88,972 | $ | 123,943 | $ | 190,666 | $ | 196,375 | |||||||||||||||||||
| Average total equity | $ | 1,332,304 | $ | 1,289,535 | $ | 1,273,092 | $ | 1,251,994 | $ | 1,241,522 | |||||||||||||||||||
| Capital Ratio Data | |||||||||||||||||||||||||||||
| Total risk-based capital ratio | 15.1 | % | 15.1 | % | 15.6 | % | 15.8 | % | 15.7 | % | |||||||||||||||||||
| Tier 1 capital ratio | 13.8 | % | 13.9 | % | 13.9 | % | 14.1 | % | 14.0 | % | |||||||||||||||||||
| Tier 1 common equity ratio | 13.3 | % | 13.4 | % | 13.1 | % | 13.3 | % | 13.2 | % | |||||||||||||||||||
| Tier 1 leverage ratio | 11.8 | % | 11.7 | % | 11.8 | % | 11.7 | % | 11.7 | % | |||||||||||||||||||
| Tangible capital ratio (1) | 10.7 | % | 10.4 | % | 10.0 | % | 9.9 | % | 9.7 | % | |||||||||||||||||||
(1) Non-GAAP measure
14
TriCo Bancshares—Non-GAAP Financial Measures (unaudited) | ||
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 | Twelve months ended | ||||||||||||||||||||||||||||
| (dollars in thousands) | December 31, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||
| Net interest margin | |||||||||||||||||||||||||||||
| Acquired loans discount accretion, net: | |||||||||||||||||||||||||||||
| Amount (included in interest income) | $915 | $996 | $1,129 | $5,153 | $4,329 | ||||||||||||||||||||||||
| Effect on average loan yield | 0.05 | % | 0.06 | % | 0.06 | % | 0.08 | % | 0.07 | % | |||||||||||||||||||
| Effect on net interest margin (FTE) | 0.04 | % | 0.04 | % | 0.05 | % | 0.06 | % | 0.05 | % | |||||||||||||||||||
| Net interest margin (FTE) | 4.02 | % | 3.92 | % | 3.76 | % | 3.89 | % | 3.71 | % | |||||||||||||||||||
| Net interest margin less effect of acquired loan discount accretion (Non-GAAP) | 3.98 | % | 3.88 | % | 3.71 | % | 3.83 | % | 3.66 | % | |||||||||||||||||||
| Three months ended | Twelve months ended | ||||||||||||||||||||||||||||
| (dollars in thousands) | December 31, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||
| Pre-tax pre-provision return on average assets or equity | |||||||||||||||||||||||||||||
| Net income (GAAP) | $33,634 | $34,019 | $29,034 | $121,558 | $114,868 | ||||||||||||||||||||||||
| Exclude provision for income taxes | 12,942 | 12,449 | 9,854 | 44,601 | 40,236 | ||||||||||||||||||||||||
| Exclude provision for credit losses | 3,000 | 670 | 1,702 | 12,063 | 6,632 | ||||||||||||||||||||||||
| Net income before provisions for income taxes and credit losses (Non-GAAP) | $49,576 | $47,138 | $40,590 | $178,222 | $161,736 | ||||||||||||||||||||||||
| Average assets (GAAP) | $9,929,582 | $9,900,675 | $9,725,643 | $9,854,786 | $9,757,326 | ||||||||||||||||||||||||
| Average equity (GAAP) | $1,332,304 | $1,289,535 | $1,241,522 | $1,286,959 | $1,200,140 | ||||||||||||||||||||||||
| Return on average assets (GAAP) (annualized) | 1.34 | % | 1.36 | % | 1.19 | % | 1.23 | % | 1.18 | % | |||||||||||||||||||
| Pre-tax pre-provision return on average assets (Non-GAAP) (annualized) | 1.98 | % | 1.89 | % | 1.66 | % | 1.81 | % | 1.66 | % | |||||||||||||||||||
| Return on average equity (GAAP) (annualized) | 10.02 | % | 10.47 | % | 9.30 | % | 9.45 | % | 9.57 | % | |||||||||||||||||||
| Pre-tax pre-provision return on average equity (Non-GAAP) (annualized) | 14.76 | % | 14.50 | % | 13.01 | % | 13.85 | % | 13.48 | % | |||||||||||||||||||
15
| Three months ended | Twelve months ended | ||||||||||||||||||||||||||||
| (dollars in thousands) | December 31, 2025 | September 30, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||
| Return on tangible common equity | |||||||||||||||||||||||||||||
| Average total shareholders' equity | $1,332,304 | $1,289,535 | $1,241,522 | $1,286,959 | $1,200,140 | ||||||||||||||||||||||||
| Exclude average goodwill | 304,442 | 304,442 | 304,442 | 304,442 | 304,442 | ||||||||||||||||||||||||
| Exclude average other intangibles | 4,712 | 5,259 | 7,085 | 5,498 | 8,592 | ||||||||||||||||||||||||
| Average tangible common equity (Non-GAAP) | $1,023,150 | $979,834 | $929,995 | $977,019 | $887,106 | ||||||||||||||||||||||||
| Net income (GAAP) | $33,634 | $34,019 | $29,034 | $121,558 | $114,868 | ||||||||||||||||||||||||
| Exclude amortization of intangible assets, net of tax effect | 339 | 339 | 725 | 1,381 | 2,900 | ||||||||||||||||||||||||
| Tangible net income available to common shareholders (Non-GAAP) | $33,973 | $34,358 | $29,759 | $122,939 | $117,768 | ||||||||||||||||||||||||
| Return on average equity (GAAP) (annualized) | 10.02 | % | 10.47 | % | 9.30 | % | 9.45 | % | 9.57 | % | |||||||||||||||||||
| Return on average tangible common equity (Non-GAAP) | 13.17 | % | 13.91 | % | 12.73 | % | 12.58 | % | 13.28 | % | |||||||||||||||||||
| Three months ended | |||||||||||||||||||||||||||||
| (dollars in thousands) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||
| Tangible shareholders' equity to tangible assets | |||||||||||||||||||||||||||||
| Shareholders' equity (GAAP) | $1,328,001 | $1,304,305 | $1,266,823 | $1,255,519 | $1,220,907 | ||||||||||||||||||||||||
| Exclude goodwill and other intangible assets, net | 308,913 | 309,395 | 309,877 | 310,360 | 310,874 | ||||||||||||||||||||||||
| Tangible shareholders' equity (Non-GAAP) | $1,019,088 | $994,910 | $956,946 | $945,159 | $910,033 | ||||||||||||||||||||||||
| Total assets (GAAP) | $9,822,063 | $9,878,836 | $9,923,983 | $9,819,599 | $9,673,728 | ||||||||||||||||||||||||
| Exclude goodwill and other intangible assets, net | 308,913 | 309,395 | 309,877 | 310,360 | 310,874 | ||||||||||||||||||||||||
| Total tangible assets (Non-GAAP) | $9,513,150 | $9,569,441 | $9,614,106 | $9,509,239 | $9,362,854 | ||||||||||||||||||||||||
| Shareholders' equity to total assets (GAAP) | 13.52 | % | 13.20 | % | 12.77 | % | 12.79 | % | 12.62 | % | |||||||||||||||||||
| Tangible shareholders' equity to tangible assets (Non-GAAP) | 10.71 | % | 10.40 | % | 9.95 | % | 9.94 | % | 9.72 | % | |||||||||||||||||||
| Three months ended | |||||||||||||||||||||||||||||
| (dollars in thousands) | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||
| Tangible common shareholders' equity per share | |||||||||||||||||||||||||||||
| Tangible shareholders' equity (Non-GAAP) | $1,019,088 | $994,910 | $956,946 | $945,159 | $910,033 | ||||||||||||||||||||||||
| Common shares outstanding at end of period | 32,334,974 | 32,506,880 | 32,550,264 | 32,892,488 | 32,970,425 | ||||||||||||||||||||||||
| Common shareholders' equity (book value) per share (GAAP) | $41.07 | $40.12 | $38.92 | $38.17 | $37.03 | ||||||||||||||||||||||||
| Tangible common shareholders' equity (tangible book value) per share (Non-GAAP) | $31.52 | $30.61 | $29.40 | $28.73 | $27.60 | ||||||||||||||||||||||||
16
Investor Presentation | Fourth Quarter 2025 Investor Presentation Fourth Quarter 2025 Richard P. Smith, President & Chief Executive Officer Daniel K. Bailey, EVP & Chief Banking Officer Peter G. Wiese, EVP & Chief Financial Officer Exhibit 99.2
Investor Presentation | Fourth Quarter 20252 Safe Harbor 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 us. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond our control. 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: macroeconomic, geopolitical, and other challenges and uncertainties, including those related to actual or potential policies and actions from the U.S. administration, such as tariffs and reciprocal actions by other countries or regions and their ultimate impact on us, our customers, financial markets, and the overall U.S. and global economies; the uncertainty of rapidly evolving and changing U.S. trade policies and practices; inflation/deflation, interest rate, market and monetary fluctuations/volatility; increases in unemployment rates; slowing economic growth or recession in the U.S. and other countries or regions; the impact of any future federal government shutdown and uncertainty regarding the federal government’s debt limit; the impact of changes in financial services industry policies, laws and regulations; regulatory restrictions or adverse regulatory findings affecting our ability to successfully market and price our products to consumers; systemic or non-systemic bank failures or crises and any related impact on depositor behavior or investor sentiment; the impacts of international hostilities, wars, terrorism or geopolitical events; risks related to the sufficiency of liquidity, including our ability to attract and maintain deposits; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learning; extreme weather, natural disasters and other catastrophic events and their effects on our customers and the economic and business environments in which we operate; current and future economic and market conditions of the local economies in which we conduct operations; declines in housing and commercial real estate prices and changes in the financial performance and/or condition of our borrowers; the market value of our investment securities and possible other-than-temporary impairment of securities held by us due to changes in credit quality or rates; the availability of, and cost of, sources of funding and the demand for our products; the possibility that our recorded goodwill could become impaired, which may have an adverse impact on our earnings and capital; the costs or effects of mergers, acquisitions or dispositions we may make, as well as whether we are able to obtain any required governmental approvals in connection with any such activities, or identify and complete favorable transactions in the future, and/or realize the anticipated financial and business benefits; the volatility of the stock market and its impact on our stock price and our ability to conduct acquisitions; the regulatory and financial impacts associated with exceeding $10 billion in total assets; the ability to execute our business plan in new markets; our future operating or financial performance, including our outlook for future growth and our ability to control expenses; changes in the level and direction of our nonperforming assets and charge-offs and the appropriateness of the allowance for credit losses; the effectiveness of us managing the mix of earning assets and in improving, resolving or liquidating lower-quality assets; changes in accounting standards and practices; changes in consumer spending, borrowing and savings habits; the effects of changes in the level or cost of checking or savings account deposits on our funding costs and net interest margin; the impact of alternative currencies such as stablecoin and other cryptocurrencies on our ability to attract deposits; increasing noninterest expense and its impact on our financial performance; competition and innovation with respect to financial products and services by banks, financial institutions and non-traditional competitors including retail businesses and technology companies; potential changes to loss allocations between financial institutions and customers, including for losses incurred from the use of our products and services, including electronic payments and payment of checks, that were authorized by the customer but induced by fraud; the challenges of attracting, integrating and retaining key employees; the impact of the 2023 cyber security ransomware incident, including the pending litigation, on our operations and reputation; the vulnerability of our operational or security systems or infrastructure, the systems of third- and fourth-party vendors or other service providers with whom we contract, and our customers to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and data/security breaches and the cost to defend against and respond to such incidents; increased data security risks due to work from home arrangements and email vulnerability; failure to safeguard personal information, and any resulting litigation; the effect of a fall in stock market prices on our brokerage and wealth management businesses; the effectiveness of our risk management framework and quantitative models; the emergence or continuation of widespread health emergencies or pandemics; potential judgments, orders, settlements, penalties, fines and reputational damage resulting from pending or future litigation and regulatory investigations, proceedings and enforcement actions; and our ability to manage the risks involved in the foregoing. There can be no assurance that future developments affecting us will be the same as those anticipated by management. Additional factors that could cause results to differ materially from those described above can be found in our filings with the U.S. Securities and Exchange Commission, including without limitation the “Risk Factors” Section of TriCo’s Annual Report on Form 10-K for the year ended December 31, 2024, Such filings are also available in the “Investor Relations” section of our website, https://www.tcbk.com/investor-relations. 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 | Fourth Quarter 20253 Executive Team Greg Gehlmann SVP General Counsel Craig Carney EVP Chief Credit Officer Rick Smith President & Chief Executive Officer Dan Bailey EVP Chief Banking Officer Angela Rudd SVP Chief Risk Officer Jason Levingston SVP Chief Information Officer Peter Wiese EVP Chief Financial Officer Bret Funderburgh SVP Deputy Chief Credit Officer Scott Robertson SVP Chief Community Banking Officer Scott Myers SVP Head of Wholesale Banking Kristen Dominguez SVP Chief Human Resources Officer
Investor Presentation | Fourth Quarter 20254 Most Recent Quarter Highlights Pre-tax pre-provision ROAA and ROAE were 1.98% and 14.8%, respectively, for the quarter ended December 31, 2025, and 1.66% and 13.0%, respectively, for the same quarter in the prior year. Our efficiency ratio was 54.7% for the quarter ended December 31, 2025, compared to 56.2% for the trailing quarter end and 59.6% for the quarter ended December 31, 2024. Operating Leverage and Profitability Net interest income (FTE) grew 3.0% or $2.7 million to $92.5 million compared to $89.8 million in the trailing quarter and by 9.6% or $8.1 million compared to $84.4 million in the same quarter of the prior year. Net interest margin (FTE) of 4.02% compared favorably to both 3.92% in the prior quarter and 3.76% from the quarter ended December 31, 2024. Average yield on earning assets (FTE) of 5.23%, was an increase of 1 basis point over the 5.22% in the quarter ended December 31, 2024, but slightly lower than the 5.25% in the quarter ended September 30, 2025. Cost of interest-bearing liabilities was 1.90%, 15 basis points lower than the trailing quarter, and a 37 basis points decrease from the 2.27% for the quarter ended December 31, 2025. The Company’s average cost of total deposits of 1.29% was 10 basis points lower than the trailing quarter, and 17 basis points lower than the quarter ended December 31, 2025. Net Interest Income and Margin Loan balances increased $104.3 million or 6.0% (annualized) from the trailing quarter. Deposit balances decreased $70.6 million or 3.4% (annualized) from the trailing quarter, which is consistent with one-way sale of deposits totaling $72.9 million as of December 31, 2025. Loan to deposit ratio was 86.1% for the current quarter, as compared to 83.7% at December 31, 2024. Balance Sheet Management No reliance on brokered deposits or FRB borrowing facilities during 2025 or 2024 Average non-interest-bearing deposits comprised 31.4% of average total deposits for the quarter, up from 30.5% in the prior quarter Approximately a 50/50 split between consumer and business deposit dollars reflects a diversified client base. Diverse Deposit Base & Liquidity The allowance for credit losses to total loans was 1.77% at December 31, 2025, compared to 1.85% at December 31, 2024, as overall credit trends in the portfolio continued to improve. TCBK has a long history of proactive conservative risk grading and we believe that sufficient coverage has been established for potential economic factors in credit risk Approximately 63.6% of total non-accrual loans were paid current as of December 31, 2025 Credit Quality All regulatory capital ratios remain well above required thresholds. A new share repurchase program was approved by the board with 2,000,000 shares authorized for repurchase Tangible capital ratio of 10.7% at December 31, 2025, an increase from 10.4% at September 30, 2025, and 9.7% at December 31, 2024. Capital Strategies
Investor Presentation | Fourth Quarter 20255 Company Overview Nasdaq: TCBK Headquarters: Chico, California Stock Price*: $47.37 Market Cap.: $1.53 Billion Asset Size: $9.82 Billion Loans: $7.11 Billion Deposits: $8.26 Billion Bank Branches: 68 ATMs: 83 Bank ATMs, with access to ~ 40,000 in network Market Area: TriCo currently serves 31 counties throughout California * As of close of business December 31, 2025
Investor Presentation | Fourth Quarter 20256 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 PPNR ($MM) $37.3 $40.9 $38.9 $37.5 $39.6 $36.6 $45.2 $55.3 $55.3 $53.2 $43.1 $46.2 $42.4 $42.0 $39.5 $39.6 $40.6 $39.0 $42.5 $47.1 $49.6 Net Income ($MM) $23.6 $33.6 $28.4 $27.4 $28.2 $20.4 $31.4 $37.3 $36.3 $35.8 $24.9 $30.6 $26.1 $27.7 $29.0 $29.1 $29.0 $26.4 $27.5 $34.0 $33.6 Qtrly Diluted EPS $0.79 $1.13 $0.95 $0.92 $0.94 $0.67 $0.93 $1.12 $1.09 $1.07 $0.75 $0.92 $0.78 $0.83 $0.87 $0.88 $0.88 $0.80 $0.84 $1.04 $1.03 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $0 $10 $20 $30 $40 $50 $60 Q tr ly E P S ( d ilu te d ) E a rn in g s (in M ill io n s) Consistent Earnings Track Record March 2022 Acquired Valley Republic Bancorp ($1.4B assets)
Investor Presentation | Fourth Quarter 20257 $0.74 $0.53 $1.13 $0.67 $1.07 $0.83 $0.80 $0.75 $0.25 $0.95 $0.93 $0.75 $0.87 $0.84 $0.76 $0.59 $0.92 $1.12 $0.92 $0.88 $1.04 $0.79 $0.94 $1.09 $0.78 $0.88 $1.03 $3.00 $2.16 $3.94 $3.83 $3.52 $3.46 $3.71 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 2019 2020 2021 2022 2023 2024 2025 Q1 Q2 Q3 Q4 27% 41% 25% 29% 34% 38% 37% 2019 2020 2021 2022 2023 2024 2025 10.49% 7.18% 12.10% 11.67% 10.65% 9.57% 9.45% 2019 2020 2021 2022 2023 2024 2025 $0.19 $0.22 $0.25 $0.25 $0.30 $0.33 $0.33 $0.19 $0.22 $0.25 $0.25 $0.30 $0.33 $0.33 $0.22 $0.22 $0.25 $0.30 $0.30 $0.33 $0.36 $0.22 $0.22 $0.25 $0.30 $0.30 $0.33 $0.36 $0.82 $0.88 $1.00 $1.10 $1.20 $1.32 $1.38 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 2019 2020 2021 2022 2023 2024 2025 Q1 Q2 Q3 Q4 Shareholder Returns Dividends per Share: 10% CAGR* Dividends as % of Earnings Return on Avg. Shareholder Equity Diluted EPS *Compound Annual Growth Rate, 10 years 2025 values through the twelve months ended 12/31/2025
Investor Presentation | Fourth Quarter 2025 Deposits 8
Investor Presentation | Fourth Quarter 20259 4 2 .0 4 0 .3 3 8 .0 3 5 .7 3 4 .8 3 2 .6 3 1 .8 3 1 .7 3 1 .5 3 0 .9 3 0 .6 3 0 .5 3 1 .4 0 10 20 30 40 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2025 Q1 2025 Q2 2025 Q3 2025 Q4 Non Interest-bearing Deposits as % of Total Deposits TCBK Peers 7 6 .5 7 9 .5 8 0 .4 8 4 .0 8 7 .7 8 7 .7 8 6 .6 8 6 .5 8 7 .2 8 6 .5 8 6 .5 8 7 .5 8 9 .7 0 20 40 60 80 100 120 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2025 Q1 2025 Q2 2025 Q3 2025 Q4 Loans to Core Deposits (%) TCBK Peers Liability Mix: Strength in Funding Total Deposits = $8.26 billion 99.4% of Funding Liabilities Liability Mix 12/31/2025 Peer group consists of 99 closest peers in terms of total assets, range $6.3 to 13.3 Billion; source: BankRegData.com Net Loans includes LHFS and Allowance for Credit Loss; Core Deposits = Total Deposits less CDs > 250k and Brokered Deposits Non Interest- bearing Demand Deposits, 30.5% Interest-bearing Demand & Savings Deposits, 53.7% Time Deposits, 13.1% Borrowings & Subordinated Debt, 0.6% Other liabilities, 2.1%
Investor Presentation | Fourth Quarter 202510 $224 $346 $492 $588 $697 $972 $1,035 $1,091 $1,123 $1,110 $1,111 $1,106 $1,110 $4,603 $4,443 $4,530 $4,564 $4,414 $4,415 $4,458 $4,399 $4,416 $4,556 $4,705 $4,684 $4,560 $3,502 $3,237 $3,073 $2,858 $2,723 $2,600 $2,557 $2,548 $2,549 $2,539 $2,560 $2,544 $2,594 $8,329 $8,026 $8,095 $8,010 $7,834 $7,988 $8,050 $8,037 $8,088 $8,205 $8,376 $8,334 $8,264 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 15.3% as % of Total Accounts, 84.7% Deposits: Strength in Cost of Funds . Mix of Demand & Savings 51.3% as a % of Total Balances, 48.7%
Investor Presentation | Fourth Quarter 202511 $630 $904 $979 $1,041 $1,074 $1,063 $1,075 $1,075 $1,083 3.63% 4.15% 4.31% 4.26% 4.05% 3.69% 3.49% 3.42% 3.30% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% $0.00 $200.00 $400.00 $600.00 $800.00 $1,000.00 Q4-2023 Q1-2024 Q2-2024 Q3-2024 Q4-2024 Q1-2025 Q2-2025 Q3-2025 Q4-2025 Current Balance Weighted Average Rate $868 $112 $88 $15 3.38% 3.10% 2.98% 1.81% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% $0 $100 $200 $300 $400 $500 $600 $700 $800 <3 Months 3-6 Months 6-12 Months >12 Months Current Balance Wtd Avg Rate Deposits: CD Balance and Maturity Composition * Note: Excludes CDARS; $27MM balance at 12/31/2025 * CD special as of Dec 31, 2025, subject to change CD Balances Balances in $ millions, balances and Wtd Avg Rates are as of period end CD Maturities
Investor Presentation | Fourth Quarter 202512 $1,820 $876 $1,133 $730 $1 <=0.01% 0.01% - 2.0% 2.0% - 3.0% 3.0% - 4.0% >4.0% $4,414 $4,415 $4,458 $4,399 $4,416 $4,556 $4,705 $4,684 $4,560 1.37% 1.55% 1.66% 1.66% 1.51% 1.50% 1.60% 1.58% 1.38% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 Q4-2023 Q1-2024 Q2-2024 Q3-2024 Q4-2024 Q1-2025 Q2-2025 Q3-2025 Q4-2025 Current Balance Weighted Average Last Accrual Rate Deposits: Interest Bearing Demand and Savings Interest Bearing Demand and Savings Balances in $ millions, balances and Wtd Avg Rates are as of period end Int-Bearing Demand & Savings by Wtd Avg Rate 1.66% 1.66% 1.51% 1.50% 1.60% 1.58% 1.67% 1.74% 1.65% 1.64% 1.60% 1.65% Q2-2024 Q3-2024 Q4-2024 Q1-2025 Q2-2025 Q3-2025 WAR QTD Cost 1.66% 1.66% 1.51% 1.50% 1.60% 1.58% 1.38% 1.67% 1.74% 1.65% 1.64% 1.60% 1.65% 1.52% 2-2024 Q3-2024 Q4-2024 Q1-2025 Q2-2025 Q3-2025 Q4-2025
Investor Presentation | Fourth Quarter 2025 Loans and Credit Quality 1313
Investor Presentation | Fourth Quarter 202514 $2,523 $2,760 $3,015 $4,022 $4,307 $4,763 $4,917 $6,450 $6,795 $6,769 $6,769 $6,823 $6,961 $7,010 $7,114 5.52% 5.32% 5.16% 5.24% 5.44% 5.02% 4.97% 4.86% 5.44% 5.79% 5.78% 5.71% 5.76% 5.75% 5.77% 3.00% 4.00% 5.00% 6.00% $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q4-2024 Q1-2025 Q2-2025 Q3-2025 Q4-2025 Total Loans Loan Yield Loan Portfolio and Yield Trailing 10 years Trailing 5 quarters Acquired VRB Loans of $795MM upon 3/25/2022 with a WAR of 4.31%. Yield scaled to range of 3% to 6% in the visual End of period balances are presented net of fees and include LHFS. Yields based on average balance and annualized interest income for quarterly periods.
Investor Presentation | Fourth Quarter 202515 $159 $170 $247 $193 $114 $121 $146 $260 $161 $235 $241 $278 -$92 -$107 -$83 -$110 -$83 -$137 -$113 -$170 -$69 -$115 -$139 -$146 -$94 $36 $22 -$24 -$41 -$86 -$11 -$43 $35 -$48 -$30 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q3-2024 Q4-2024 Q1-2025 Q2-2025 Q3-2025 Q4-2025 Origination Payoffs Balance Change net of Originations and Payoffs Gross Production vs. Payoff Outstanding Principal in Millions, excludes Credit Card balances Slower pace of originations relative to 2021-22 commensurate with market rate changes, liquidity management, and NIM preservation. Pace of originations has consistently gained momentum following the reorganization of Wholesale Banking, with net loan growth and repricing in the adjustable-rate portfolio driving improved portfolio yields
Investor Presentation | Fourth Quarter 202516 Gas Station 20% Light Industrial 17% Office 13% Retail 10% Warehouse 8% Other (18 Types) 32% CRE Owner Occupied by Collateral Type Retail 23% Office 19% Hotel/Motel 15% Light Industrial 9% Mixed Use - Retail 8% Other (22 Types) 26% CRE Non-Owner Occupied by Collateral Type Diversified Loan Portfolio Dollars in millions, Net Book Value at period end, excludes LHFS; Commercial & Industrial includes Municipality Loans.
Investor Presentation | Fourth Quarter 202517 Office RE Collateral Graph circle size represent total loan Commitments in the Region; regional assignment based upon ZIP code of collateral California Office Secured by Region Regions by Collateral Code Regions by Occupancy Type
Investor Presentation | Fourth Quarter 202518 72% 60% 77% 61% 76% 78% 43% 50% 27% 37% 22% 39% 24% 19% 56% 43% 1% 3% 1% 0% 0% 3% 1% 7% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Retail Building Office Building Hotel/Motel Light Industrial Mixed Use - Retail Other Multifamily CRE Owner Occupied <= 60% > 60% - 75% > 75% CRE Collateral Values Distribution by LTV (1) LTV Range CRE Non-Owner Occupied by Collateral Type (1) LTV as of most recent origination or renewal date
Investor Presentation | Fourth Quarter 202519 $2,511 $2,341 $1,090 $1,033 $429 $361 $409 $438 $1,026 $968 $846 $862 $305 $283 $426 $421 $169 $159 $50 $53 $654 $666 $657 $616 $60 $65 $334 $272 $125 $134 4Q-2025 4Q-2024 4Q-2025 4Q-2024 4Q-2025 4Q-2024 4Q-2025 4Q-2024 4Q-2025 4Q-2024 4Q-2025 4Q-2024 4Q-2025 4Q-2024 4Q-2025 4Q-2024 CRE Non-Owner Occupied Multifamily SFR HELOC and Junior Liens Commercial & Industrial CRE-Owner Occupied SFR 1-4 Term Construction Agriculture & Farmland Outstanding Principal ($MM) Unfunded Commitment ($MM) 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% $0 $25 $50 $75 $100 $125 $150 $175 $200 20252024202320222021202020192018201720162015201420132012<2012 Private Balance (MM) Unfunded (MM) WA Rate 6.91% 7.79% 8.14% 7.60% 7.32% 7.45% 7.52% 7.73%7.76% 7.85% 7.54% 7.45% 7.23%7.25% 7.35% Unfunded Loan Commitments HELOCs – by vintage, with weighted average rate (7.53% total WAR) Outstanding Principal and Commitments exclude unearned fees and discounts/premiums; segments exclude Leases, DDA Overdraft, Credit Cards, Auto, and other consumer. 2025 vintage reflects impact of various short-term (6 mo.) promotional rates (5.99%). Current promotional rates are 5.25%.
Investor Presentation | Fourth Quarter 202520 $605 $575 $612 $698 $705 $668 $661 $588 $590 $562 $579 $563 $582 $637 $689 $727 $709 $736 $734 $802 $826 $709 $758 $769 $779 $746 49% 45% 46% 50% 49% 48% 45% 42% 45% 43% 43% 42% 44% 6.82% 7.31% 7.61% 7.87% 7.82% 7.88% 7.87% 7.58% 7.20% 7.18% 7.18% 7.06% 6.77% 6% 6% 7% 7% 8% 8% $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 4Q-2022 1Q-2023 2Q-2023 3Q-2023 4Q-2023 1Q-2024 2Q-2024 3Q-2024 4Q-2024 1Q-2025 2Q-2025 3Q-2025 4Q-2025 Outstanding Principal ($MM) Unfunded Commitment Utilization WAR Fruit & Tree Nuts 37% Dairy 19% Post Harvest 9% Beef Cattle 8% Grape Vineyards 7% Other 20% $120 $35 $5 $88 $15 $27 $27 $89 $176 $103 $101 $68 $58 $56 $57 $16 $187 $100 54% 60% 6% 26% 32% 21% 62% 32% 64% 0% 5000% 10000% 15000% 20000% Oil & Gas Extraction Construction Finance and Insurance Real Estate Healthcare Wholesale Trans and Warehouse Other (14 Categories) Agriculture Outstanding (mln) Unfunded (mln) C&I and Ag Production Utilization • Outstanding Principal excludes unearned fees and discounts/premiums ($ millions) • As of 12/31/2025, 37% of combined C&I and Ag loans are variable rate and tied to prime; another 20% are adjustable, tied to SOFR, and repricing monthly C&I and Ag Production Utilization by NAICS Industry: 4Q-2025 Agriculture NAICS Segments
Investor Presentation | Fourth Quarter 202521 Fixed 34% Adjustable 52% Floating 14% 66% Adjustable + Floating $975 $699 $700 $752 $623 $723 $245 7.43% 5.16% 4.92% 5.33% 5.70% 6.29% 5.85% 6.52% 6.47% 6.55% 6.34% 6.38% 6.44% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% $0 $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 12/31/2025 Dollars in millions, excludes unearned fees and accretion/amortization therein. Wtd Avg Rate (weighted average rate) as of 12/31/2025 and based upon outstanding principal; Next Reprice signifies either the next scheduled reprice date or maturity. 99% of Floating benchmarked to Prime $3,741MM Adjustable, predominantly benchmarked to 5 Year Treasury Loan Yield Composition: Adjustable and Floating Rate
Investor Presentation | Fourth Quarter 202522 $3,619 $3,741 $219 ($56) ($40) 9/30/2025 Originations Payoffs Paydowns 12/31/2025 $3,358 ($190) ($42) $3,741 $616 12/31/2024 Originations Payoffs Paydowns 12/31/2025 Adjustable Rate Loans Dollars in millions, principal outstanding, excludes unearned fees; Paydowns are net of Draws on existing loans WAR (weighted average rate) based upon outstanding principal, excludes unearned fees 4.80% WAR Scaled to $3,000MM Scaled to $1,800MM 5.21% WAR Year-over-year change Quarter-over-quarter change 5.50% WAR5.43% WAR 6.12% 6.12% 5.50% WAR 6.33% 6.26% 5.21% 5.43% 5.50% 4.70% 4.80% 4.90% 5.00% 5.10% 5.20% 5.30% 5.40% 5.50% 5.60% $3,000 $3,100 $3,200 $3,300 $3,400 $3,500 $3,600 $3,700 $3,800 $3,900 Adj Rate Loans WAR
Investor Presentation | Fourth Quarter 202523 $231 $344 $390 $820 $109 $119 $394 $10 $9 $9 $30 $23 $18 $360 5.20% 5.35% 5.25% 4.67% 4.13% 5.90% 4.26% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 0 - 1 Years 1 - 3 Years 3 - 5 Years 5 - 10 Years 10 - 15 Years 15 - 20 Years > 20 Years All Fixed SFR 1-4 All WAR Fixed 34% Adjustable 52% Floating 14% $2,408MM total fixed 4.88% Wtd Avg Rate Dollars in millions, excludes unearned fees and accretion/amortization therein. Wtd Avg Rate (weighted average rate, or WAR) as of 12/31/2025 and based upon outstanding principal Loan Yield Composition: Fixed Rate Loans
Investor Presentation | Fourth Quarter 202524 $2,442 $2,409 $45 ($47) ($31) 9/30/2025 Originations Payoffs Paydowns 12/31/2025 $2,520 $2,409 $191 ($176) ($125) 12/31/2024 Originations Payoffs Paydowns 12/31/2025 Fixed Rate Loans Dollars in millions, principal outstanding, excludes unearned fees; Paydowns are net of draws on existing loans within period WAR (weighted average rate) based upon outstanding principal, excludes unearned fees Year-over-year change Quarter-over-quarter change Scaled to $2,300MM Scaled to $2,300MM 4.825% WAR 4.88% WAR 4.89% WAR Includes principal amortization as well as transfers of loans out of construction 4.88% WAR 6.56% 6.46%6.37% Appetite for fixed rate loans faces headwinds as clients anticipate future rate reductions 6.26% 4.82% 4.89% 4.88% 4.60% 4.65% 4.70% 4.75% 4.80% 4.85% 4.90% 4.95% 5.00% $2,300 $2,350 $2,400 $2,450 $2,500 $2,550 $2,600 $2,650 $2,700 Fixed Rate Loans WAR
Investor Presentation | Fourth Quarter 202525 ($97) $2,280 $216 $124,571 ($1,209) $125,762 ACL 9/30/2025 Charge Offs & Recoveries Specific Reserve Changes Portfolio Growth/Mix Reserve Rate Changes ACL 12/31/2025 $120,000 $121,000 $122,000 $123,000 $124,000 $125,000 $126,000 Allowance for Credit Losses Drivers of Change under CECL Insignificant net change in specific reserves Primarily driven by changes in mix shift between loan segments Qualitative reserve factors & economic outlook remain unchanged from the prior quarter. Excludes changes in specific reserves Gross charge-offs $1.345 million Gross recoveries $0.136 million 1.78% of Total Loans 1.77% of Total Loans $104.3 million loan growth in the quarter Scaled to reflect $120MM
Investor Presentation | Fourth Quarter 202526 Allowance for Credit Losses Allocation of Allowance by Segment
Investor Presentation | Fourth Quarter 202527 Risk Grade Migration Zero balance in Doubtful and Loss
Investor Presentation | Fourth Quarter 202528 381% 363% 377% 297% 284% 234% 192% 190% 196% 1 8 9 % 1 7 4 % 1 6 7 % 1 7 2 % 1 6 0 % 1 7 9 % 1 9 1 % 1 9 1 % 2023 Q4 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2025 Q1 2025 Q2 2025 Q3 2025 Q4 TCBK Peers 0.35% 0.37% 0.35% 0.44% 0.48% 0.58% 0.67% 0.71% 0.70% 0.53% 0.53% 0.55% 0.57% 0.60% 0.63% 0.65% 0.68% 2023 Q4 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2025 Q1 2025 Q2 2025 Q3 2025 Q4 TCBK Peers 0.10% 0.06% 0.14% 0.09% 0.07% 0.18% 0.13% 0.15% 0.18% 0.54% 0.46% 0.49% 0.49% 0.48% 0.58% 0.53% 0.55% 2023 Q4 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2025 Q1 2025 Q2 2025 Q3 2025 Q4 TCBK Peers Asset Quality Peer group consists of 99 closest peers in terms of asset size, range $6.3-13.3 Billion, source: BankRegData.com Past due 30-89 accruing loans exclude non-accrual; NPAs as presented are net of guarantees; NPLs as presented are not adjusted for guarantees. The Bank continues to actively and aggressively address potential credit issues with short resolution timelines. Despite increase in non-performing assets over the past several quarters, current levels remain well below historical norms for both the Company and the community banking industry. Non-Performing Assets as a % of Total Assets Coverage Ratio: ACL as % of Non-Performing LoansPast Due 30-89 as a % of Total Loans
Investor Presentation | Fourth Quarter 2025 Financials 2929
Investor Presentation | Fourth Quarter 202530 Net Interest Income (NII) and Margin (NIM)
Investor Presentation | Fourth Quarter 202531 Net Interest Income (NII) and Margin (NIM)
Investor Presentation | Fourth Quarter 202532 1.43% 0.91% 1.43% 1.28% 1.19% 1.18% 1.23% 2019 2020 2021 2022 2023 2024 2025 1.94% 1.83% 1.91% 1.97% 1.87% 1.66% 1.81% 2019 2020 2021 2022 2023 2024 2025 59.7% 58.4% 53.2% 53.0% 55.8% 59.1% 57.5% 2019 2020 2021 2022 2023 2024 2025 4.47% 3.96% 3.58% 3.88% 3.96% 3.71% 3.89% 2019 2020 2021 2022 2023 2024 2025 Current Operating Metrics 2025 values through the twelve months ended 12/31/2025 Net Interest Margin (FTE) PPNR as % of Average Assets Efficiency Ratio ROAA
Investor Presentation | Fourth Quarter 202533 10.6% 9.3% 9.2% 7.6% 8.8% 9.7% 10.7% 2019 2020 2021 2022 2023 2024 2025 15.1% 15.2% 15.4% 14.2% 14.7% 15.7% 15.1% 2019 2020 2021 2022 2023 2024 2025 13.3% 12.9% 13.2% 11.7% 12.2% 13.2% 13.3% 2019 2020 2021 2022 2023 2024 2025 14.4% 14.0% 14.2% 12.4% 12.9% 14.0% 13.8% 2019 2020 2021 2022 2023 2024 2025 Well Capitalized Tier 1 Capital Ratio Total Risk Based Capital CET1 Ratio Tangible Capital Ratio 2025 values through the twelve months ended 12/31/2025
Investor Presentation | Fourth Quarter 202534 Our Mission Tri Counties Bank exists for just one purpose: to improve the financial success and well-being of our shareholders, customers, communities and employees. Core Values Trust Respect Integrity Communication Opportunity Team Ethos We are one team, aligned, customer-focused and collaborative to achieve next-level performance.