Core Point - Tri Counties Bank has opened a new branch in the West Portal neighborhood of San Francisco, enhancing access to personalized financial solutions for local businesses and residents [1] Company Summary - The new full-service branch is located at 279 W. Portal Avenue [1] - The branch emphasizes exceptional service and local decision-making [1] - Dedicated customer parking is available at the new location [1] - Lobby hours for the branch are Monday to Friday from 9 A.M. to 5 P.M. [1]

Company Overview - TriCo (TCBK) is based in Chico and operates in the Finance sector, with a year-to-date share price change of 3.68% [3] - The company currently pays a dividend of $0.36 per share, resulting in a dividend yield of 3.18%, which is higher than the Banks - West industry's yield of 2.78% and the S&P 500's yield of 1.51% [3] Dividend Performance - The annualized dividend of TriCo is $1.44, reflecting a 9.1% increase from the previous year [4] - Over the past five years, TriCo has increased its dividend three times, achieving an average annual increase of 9.48% [4] - The current payout ratio is 39%, indicating that the company pays out 39% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for TriCo's earnings in 2025 is $3.48 per share, with an expected increase of 0.58% from the previous year [5] - The company is viewed as a compelling investment opportunity due to its attractive dividend and strong earnings growth potential [6]

Core Viewpoint - TriCo (TCBK) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Company Performance and Outlook - The upgrade for TriCo reflects an improvement in its underlying business, suggesting that investors may push the stock price higher due to rising earnings estimates [5][10]. - For the fiscal year ending December 2025, TriCo is expected to earn $3.48 per share, with a 4.8% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].

Core Viewpoint - TriCo Bancshares (TCBK) continues to demonstrate a shareholder-friendly approach by increasing its quarterly cash dividend to 36 cents per share, marking a 9.1% increase from the previous payout [1][8]. Dividend History - The recent dividend hike represents the 144th consecutive quarterly dividend for TriCo Bancshares, with a total of 10 increases over the past 15 years, growing from 9 cents to 36 cents, a fourfold increase [2][8]. Financial Metrics - With a closing price of $44.44, TCBK's dividend yield is currently at 2.9%. The company maintains a payout ratio of 39% and an annualized dividend growth rate of 9.48%, indicating a strong capacity for reinvestment while providing consistent capital returns [3][8]. Share Repurchase Program - TriCo Bancshares has been actively repurchasing shares, with a board-approved plan to buy back up to 2.0 million shares. As of June 30, 2025, approximately 0.36 million shares remain authorized for repurchase [4]. Liquidity Position - The company reported $314 million in cash and cash equivalents against $119 million in total debt as of June 30, 2025, highlighting a robust liquidity profile that supports its dividend and share repurchase initiatives [5][8]. Stock Performance - Over the past three months, TCBK shares have increased by 10.4%, slightly underperforming the industry growth of 11.9% [6]. Zacks Rank - TCBK currently holds a Zacks Rank of 2 (Buy), indicating a favorable outlook in the market [9].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ___________________ FORM 10-Q ___________________ ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended: June 30, 2025 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from to Commission File Number: 000-10661 ___________________ (Exact Name of Registrant as Specified in Its Charter) __ ...

Core Viewpoint - TriCo (TCBK) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Impact - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [3]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. TriCo's Earnings Outlook - For the fiscal year ending December 2025, TriCo is expected to earn $3.40 per share, which remains unchanged from the previous year [7]. - Over the past three months, the Zacks Consensus Estimate for TriCo has increased by 1.8%, reflecting a positive trend in earnings estimates [7]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [6]. - The Zacks rating system maintains a balanced distribution of "buy" and "sell" ratings across over 4,000 stocks, ensuring that only the top 20% receive a "Strong Buy" or "Buy" rating [8][9]. Conclusion - The upgrade of TriCo to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for higher stock movement in the near term due to favorable earnings estimate revisions [9].

Core Insights - TriCo (TCBK) reported revenue of $103.61 million for the quarter ended June 2025, marking a year-over-year increase of 5.9% and a surprise of +2.38% over the Zacks Consensus Estimate of $101.2 million [1] - The EPS for the same period was $0.84, slightly down from $0.87 a year ago, with an EPS surprise of +2.44% compared to the consensus estimate of $0.82 [1] Financial Performance Metrics - Efficiency ratio stood at 59%, better than the estimated 59.9% by analysts [4] - Net Interest Margin was reported at 3.9%, exceeding the average estimate of 3.8% [4] - Average Interest-Earning Assets totaled $8.97 billion, slightly below the two-analyst average estimate of $9.04 billion [4] - Net Interest Income reached $86.52 million, surpassing the three-analyst average estimate of $84.54 million [4] - Total Non-Interest Income was $17.09 million, compared to the average estimate of $16.42 million [4] - Gain on Sale of Loans was $0.5 million, exceeding the estimated $0.44 million by analysts [4] Stock Performance - TriCo's shares have returned +4.3% over the past month, while the Zacks S&P 500 composite has seen a +5.7% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Company Performance - TriCo (TCBK) reported quarterly earnings of $0.84 per share, exceeding the Zacks Consensus Estimate of $0.82 per share, but down from $0.87 per share a year ago, representing an earnings surprise of +2.44% [1] - The company posted revenues of $103.61 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.38% and up from $97.86 million year-over-year [2] - Over the last four quarters, TriCo has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Market Outlook - TriCo shares have underperformed the market, losing about 3.9% since the beginning of the year compared to the S&P 500's gain of 8.1% [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at $0.85 for the coming quarter and $3.32 for the current fiscal year [7] Industry Context - The Zacks Industry Rank indicates that the Banks - West industry is currently in the top 29% of over 250 Zacks industries, suggesting a favorable environment for stocks in this sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact TriCo's stock performance [5]

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) [Q2 2025 Financial Highlights](index=1&type=section&id=2Q25%20Financial%20Highlights) The company reported strong Q2 2025 results driven by loan and deposit growth, leading to higher net income and an expanded net interest margin Key Financial Metrics | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Net Income | $27.5 million | $26.4 million | +$1.1 million | | Diluted EPS | $0.84 | $0.80 | +$0.04 | | Net Interest Income (FTE) | $86.8 million | $82.8 million | +$4.0 million (4.82%) | | Net Interest Margin (FTE) | 3.88% | 3.73% | +15 bps | | Loan Balances | +8.1% (annualized) | - | - | | Deposit Balances | +8.3% (annualized) | - | - | Key Performance Ratios | Performance Ratio | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Return on Average Assets (ROA) | 1.13% | 1.09% | | Return on Average Equity (ROE) | 8.68% | 8.54% | | Efficiency Ratio | 59.00% | 60.42% | - The allowance for credit losses (ACL) to total loans stood at **1.79%**, while non-performing assets to total assets increased to **0.68%**[6](index=6&type=chunk) [Executive Commentary](index=1&type=section&id=Executive%20Commentary) Management highlighted strong loan and deposit growth as key drivers for future net interest income and noted improved operational leverage - President and CEO Rick Smith emphasized that **significant growth in both loans and deposits** was the highlight of the quarter, expecting this to drive net interest income growth for the remainder of 2025[2](index=2&type=chunk) - EVP and CFO Peter Wiese noted a **stable net interest margin outlook** and an improved efficiency ratio, indicating better operating leverage despite higher personnel costs[3](index=3&type=chunk) [Detailed Financial Analysis](index=3&type=section&id=Detailed%20Financial%20Analysis) [Operating Results and Performance Ratios](index=3&type=section&id=Operating%20Results%20and%20Performance%20Ratios) Net income grew quarter-over-quarter on higher revenue but declined year-over-year due to a significantly larger provision for credit losses Quarter-over-Quarter Operating Results | (in thousands) | Q2 2025 | Q1 2025 | % Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $86,519 | $82,542 | 4.8% | | Provision for Credit Losses | ($4,665) | ($3,728) | 25.1% | | Net Income | $27,542 | $26,363 | 4.5% | | Diluted EPS | $0.84 | $0.80 | 5.0% | Year-over-Year Operating Results | (in thousands) | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $86,519 | $81,997 | 5.5% | | Provision for Credit Losses | ($4,665) | ($405) | 1,051.9% | | Net Income | $27,542 | $29,034 | (5.1)% | | Diluted EPS | $0.84 | $0.87 | (3.4)% | [Balance Sheet Analysis](index=4&type=section&id=Balance%20Sheet%20Data) The balance sheet expanded with strong annualized growth in both loans and deposits, alongside an increase in shareholders' equity Quarter-over-Quarter Balance Sheet | Ending Balances (in thousands) | June 30, 2025 | March 31, 2025 | Annualized % Change | | :--- | :--- | :--- | :--- | | Total Loans | $6,958,993 | $6,820,774 | 8.1% | | Total Deposits | $8,375,809 | $8,205,332 | 8.3% | | Total Assets | $9,923,983 | $9,819,599 | 4.3% | Year-over-Year Balance Sheet | Ending Balances (in thousands) | June 30, 2025 | June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Loans | $6,958,993 | $6,742,526 | 3.2% | | Total Deposits | $8,375,809 | $8,050,230 | 4.0% | | Total Assets | $9,923,983 | $9,741,399 | 1.9% | - Total shareholders' equity increased by **$11.3 million** during the quarter, and book value per share increased to **$38.92** from $38.17[9](index=9&type=chunk) - Loan origination volume was elevated at **$457.7 million** for the quarter, compared to $357.5 million in the trailing quarter[10](index=10&type=chunk) [Net Interest Income and Net Interest Margin](index=5&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Net interest income and margin grew sequentially, driven by higher loan yields, lower deposit costs, and a planned debt repayment Net Interest Income and Margin (FTE) | Metric (FTE) | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Interest Income | $86.8M | $82.8M | $82.3M | | Net Interest Margin | 3.88% | 3.73% | 3.68% | | Yield on Loans | 5.76% | 5.71% | 5.82% | | Cost of Interest-Bearing Deposits | 1.97% | 2.06% | 2.14% | - The QoQ increase in net interest income was attributed to a **$2.3 million improvement** in interest income and a **$1.7 million reduction** in interest expense[21](index=21&type=chunk) - The company plans to repay subordinated debt with a total face value of **$57.7 million** and a weighted average rate of **6.54%** before September 30, 2025[24](index=24&type=chunk) [Asset Quality and Credit Loss Provisioning](index=7&type=section&id=Asset%20Quality%20and%20Credit%20Loss%20Provisioning) Asset quality saw an increased provision for credit losses and a rise in non-performing loans, primarily in the agricultural portfolio Provision for Credit Losses | (in thousands) | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Total Provision for Credit Losses | $4,665 | $3,728 | $405 | - The allowance for credit losses (ACL) was **$124.5 million**, or **1.79% of total loans**, as of June 30, 2025[30](index=30&type=chunk) - Non-performing loans increased by **$9.9 million** during the quarter to **$64.8 million**, concentrated in commercial real estate farmland[35](index=35&type=chunk) - Charge-offs for the quarter totaled **$8.6 million**, primarily related to non-performing relationships that had been fully reserved for in previous quarters[30](index=30&type=chunk) [Non-interest Income](index=9&type=section&id=Non-interest%20Income) Non-interest income grew both sequentially and year-over-year, driven by higher service fees and asset management income Non-interest Income Breakdown | (in thousands) | Q2 2025 | Q1 2025 | % Change | | :--- | :--- | :--- | :--- | | Total Service Charges and Fees | $13,650 | $12,678 | 7.7% | | Gain on Sale of Loans | $503 | $344 | 46.2% | | (Loss) Gain on Sale of Securities | $4 | ($1,146) | 100.3% | | **Total Non-interest Income** | **$17,090** | **$16,073** | **6.3%** | - The prior quarter's results were impacted by two significant non-recurring events: a **$1.2 million loss** on security sales and a **$1.2 million gain** from death benefit proceeds[40](index=40&type=chunk) - Compared to Q2 2024, non-interest income increased by **$1.2 million (7.7%)**, driven by higher service fees and asset management income[41](index=41&type=chunk) [Non-interest Expense](index=11&type=section&id=Non-interest%20Expense) Non-interest expenses rose quarter-over-quarter and year-over-year, primarily due to higher salaries and incentive compensation Non-interest Expense Breakdown | (in thousands) | Q2 2025 | Q1 2025 | % Change | | :--- | :--- | :--- | :--- | | Salaries and Benefits Expense | $38,286 | $36,855 | 3.9% | | Incentive Compensation | $5,223 | $4,038 | 29.3% | | **Total Non-interest Expense** | **$61,131** | **$59,585** | **2.6%** | - The increase in salaries and benefits was largely due to **incentive compensation** associated with increased production volumes for deposits and loans[43](index=43&type=chunk) - Compared to Q2 2024, total non-interest expense increased by **$2.8 million (4.8%)**, with salaries and benefits rising **$2.9 million (8.1%)**[45](index=45&type=chunk) [Provision for Income Taxes](index=12&type=section&id=Provision%20for%20Income%20Taxes) The effective tax rate increased to 27.2% but remained below the statutory rate due to non-taxable revenues and tax credits - The effective tax rate was **27.2%** for Q2 2025, compared to **25.3%** for Q1 2025 and **25.8%** for Q2 2024[47](index=47&type=chunk) - The difference between the effective rate and the statutory rate of **~29.6%** is attributed to non-taxable revenues and tax credits[47](index=47&type=chunk) [Supplementary Information](index=13&type=section&id=Supplementary%20Information) [About TriCo Bancshares & Forward-Looking Statements](index=13&type=section&id=About%20TriCo%20Bancshares%20%26%20Forward-Looking%20Statements) This section provides company background and outlines risks and uncertainties associated with forward-looking statements in the report - TriCo Bancshares (NASDAQ: TCBK) is the parent company of Tri Counties Bank, which was established in 1975 and is headquartered in Chico, California[48](index=48&type=chunk) - The report contains forward-looking statements that are subject to numerous risks and uncertainties, including **macroeconomic conditions and regulatory changes**[49](index=49&type=chunk) [Condensed Consolidated Financial Data](index=14&type=section&id=Condensed%20Consolidated%20Financial%20Data) This section presents unaudited condensed financial tables for the last five quarters, covering key operational and balance sheet metrics - This section presents detailed, unaudited financial tables for the last five quarters (Q2 2024 through Q2 2025)[50](index=50&type=chunk)[51](index=51&type=chunk) - The tables cover comprehensive data including income statements, balance sheets, per-share data, credit quality, and capital ratios[50](index=50&type=chunk)[51](index=51&type=chunk) [Non-GAAP Financial Measures](index=16&type=section&id=Non-GAAP%20Financial%20Measures) This section explains the use of non-GAAP measures and provides reconciliations to their nearest GAAP equivalents for better analysis - The company uses non-GAAP financial measures because it believes they provide useful and comparative information to assess core operational trends[52](index=52&type=chunk) - Reconciliations are provided for key non-GAAP measures such as **pre-tax pre-provision return on average assets** and various **tangible equity metrics**[52](index=52&type=chunk)[54](index=54&type=chunk)

[PART I – FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This section provides the unaudited financial information for TriCo Bancshares, including detailed financial statements, management's discussion and analysis, market risk disclosures, and internal controls [Item 1 – Financial Statements (Unaudited)](index=5&type=section&id=Item%201%20%E2%80%93%20Financial%20Statements%20(Unaudited)) This section presents TriCo Bancshares' unaudited condensed consolidated financial statements for Q1 2025, covering balance sheets, income statements, and detailed accounting notes [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased to $9.82 billion from $9.67 billion at year-end 2024, driven by a rise in cash and cash equivalents and a slight increase in net loans, while liabilities and equity also grew Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $308,250 | $144,956 | | Total loans, net | $6,692,351 | $6,643,157 | | Total assets | $9,819,599 | $9,673,728 | | **Liabilities & Equity** | | | | Total deposits | $8,205,332 | $8,087,576 | | Total liabilities | $8,564,080 | $8,452,821 | | Total shareholders' equity | $1,255,519 | $1,220,907 | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the three months ended March 31, 2025, net income decreased to $26.4 million from $27.7 million in Q1 2024, primarily due to slightly lower net interest income and higher non-interest expenses Income Statement Summary (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net interest income | $82,542 | $82,736 | | Provision for credit losses | $3,728 | $4,305 | | Non-interest income | $16,073 | $15,771 | | Non-interest expense | $59,585 | $56,504 | | Net income | $26,363 | $27,749 | | Diluted earnings per share | $0.80 | $0.83 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes detail the company's accounting policies, investment and loan portfolios, credit loss allowance, lease obligations, deposit structures, and regulatory capital adequacy - The company operates as a **single reportable operating segment**, with operations managed on a company-wide basis[27](index=27&type=chunk) - As of March 31, 2025, the company expects to receive all contractual cash flows from its AFS and HTM debt securities portfolio, with **no allowance for credit losses recorded for investment securities**[45](index=45&type=chunk) - The company's capital levels **exceed all capital adequacy requirements** under Basel III Capital Rules as of March 31, 2025, and the bank is considered well capitalized[119](index=119&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial performance, including net income, net interest margin, loan and deposit growth, asset quality, and the company's strong capital and liquidity positions Q1 2025 Financial Highlights | Metric | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Net Income | $26.4 million | $29.0 million | | Diluted EPS | $0.80 | $0.88 | | Net Interest Margin (FTE) | 3.73% | 3.76% | | Provision for Credit Losses | $3.7 million | $1.7 million | | Loan Growth (annualized) | 3.1% | - | | Deposit Growth (annualized) | 5.8% | - | | Non-performing Assets to Total Assets | 0.59% | 0.48% | [Results of Operations](index=43&type=section&id=Results%20of%20Operations) In Q1 2025, net interest income (FTE) was $82.8 million with a net interest margin of 3.73%, while non-interest income increased slightly and non-interest expense rose due to higher salary costs - Net interest income (FTE) for Q1 2025 was **$82.8 million**, a **0.2% decrease** from Q1 2024, with the net interest margin (FTE) at **3.73%**, up 5 basis points from 3.68% in Q1 2024[136](index=136&type=chunk)[139](index=139&type=chunk) - The provision for credit losses was **$3.7 million** in Q1 2025, driven by a **$4.9 million increase** in net reserves on individually evaluated loans, offset by net recoveries and improved economic forecasts[140](index=140&type=chunk)[141](index=141&type=chunk) - Non-interest income increased **1.9% year-over-year to $16.1 million**, which included a **$1.1 million loss** on the sale of investment securities, offset by a **$1.2 million gain** from life insurance death benefit proceeds[148](index=148&type=chunk) - Total non-interest expense rose **5.5% year-over-year to $59.6 million**, primarily due to a **7.4% increase** in salaries and benefits from merit increases and strategic hiring[150](index=150&type=chunk) [Financial Condition](index=49&type=section&id=Financial%20Condition) As of March 31, 2025, total assets reached $9.82 billion, with loans increasing by $52.3 million and deposits growing by $117.8 million, while investment securities decreased Change in Financial Condition (Q1 2025 vs Q4 2024) | Account | March 31, 2025 | December 31, 2024 | $ Change | | :--- | :--- | :--- | :--- | | Total Loans | $6,820,774 | $6,768,523 | $52,251 | | Total Investments | $1,979,116 | $2,036,610 | ($57,494) | | Total Deposits | $8,205,332 | $8,087,576 | $117,756 | - Loan originations and draws totaled approximately **$357.5 million** in Q1 2025, compared to $487.9 million in the trailing quarter[153](index=153&type=chunk) [Nonperforming Assets](index=51&type=section&id=Nonperforming%20Assets) Nonperforming assets increased by $10.7 million to $57.5 million, or 0.59% of total assets, driven by new nonperforming loan additions, though the allowance for credit losses remains strong Nonperforming Assets (in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total nonperforming loans | $54,854 | $44,096 | | Foreclosed assets | $2,685 | $2,786 | | Total nonperforming assets | $57,539 | $46,882 | | NPAs to total assets | 0.59% | 0.48% | | NPLs to total loans | 0.80% | 0.65% | [Capital Resources and Liquidity](index=55&type=section&id=Capital%20Resources%20and%20Liquidity) The company maintains a strong capital position with all regulatory ratios exceeding minimum requirements, supported by increased shareholders' equity and substantial primary liquidity - During Q1 2025, the company repurchased **89,654 shares for $3.7 million** under its 2021 Repurchase Plan[174](index=174&type=chunk)[85](index=85&type=chunk) - Tangible book value per share increased to **$28.73** at March 31, 2025, from $27.60 at December 31, 2024[175](index=175&type=chunk) Regulatory Capital Ratios | Ratio | March 31, 2025 | Minimum Requirement | | :--- | :--- | :--- | | Total risk based capital | 15.8% | 10.5% | | Tier I capital | 14.1% | 8.5% | | Common equity Tier 1 capital | 13.3% | 7.0% | | Leverage | 11.7% | 4.0% | - Total primary liquidity was **$4.08 billion** as of March 31, 2025, representing **156% of estimated total uninsured deposits**[179](index=179&type=chunk) [Item 3 – Quantitative and Qualitative Disclosures about Market Risk](index=59&type=section&id=Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate risk, with simulations indicating a 100 basis point increase would decrease net interest income by 2.3% over twelve months Interest Rate Risk Simulation (Instantaneous Shock) | Change in Rates (bps) | Estimated Change in NII (%) | Estimated Change in MVE (%) | | :--- | :--- | :--- | | +300 | (7.2)% | (4.6)% | | +200 | (4.8)% | (2.9)% | | +100 | (2.3)% | (0.6)% | | -100 | 0.1% | (3.1)% | [Item 4 – Controls and Procedures](index=59&type=section&id=Item%204%20%E2%80%93%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were **effective as of March 31, 2025**[191](index=191&type=chunk) - No changes in internal controls over financial reporting materially affected, or are reasonably likely to materially affect, these controls during the first quarter of 2025[192](index=192&type=chunk) [PART II – OTHER INFORMATION](index=60&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This section covers other information including legal proceedings, risk factors, unregistered sales of equity securities, and a list of exhibits [Item 1 – Legal Proceedings](index=60&type=section&id=Item%201%20%E2%80%93%20Legal%20Proceedings) The company is involved in various legal proceedings in the ordinary course of business, with management not expecting a material adverse effect on financial position or results - The company does not expect that the ultimate costs to resolve pending legal proceedings will have a **material adverse effect** on its consolidated financial position, results of operations, or cash flows[193](index=193&type=chunk) [Item 1A – Risk Factors](index=60&type=section&id=Item%201A%20%E2%80%93%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - The report refers investors to the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024, indicating **no material changes**[194](index=194&type=chunk) [Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds](index=60&type=section&id=Item%202%20%E2%80%93%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's stock repurchase activities for the quarter, including 99,776 shares repurchased in March 2025 at an average price of $41.20 per share Share Repurchases in Q1 2025 | Period | Total Shares Purchased | Average Price Paid | Shares Purchased Under Plan | | :--- | :--- | :--- | :--- | | Jan 2025 | — | $— | — | | Feb 2025 | — | $— | — | | Mar 2025 | 99,776 | $41.20 | 89,654 | [Item 6 – Exhibits](index=61&type=section&id=Item%206%20%E2%80%93%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files