Core Viewpoint - TriCo (TCBK) reported quarterly earnings of $0.80 per share, exceeding the Zacks Consensus Estimate of $0.78 per share, but down from $0.83 per share a year ago, indicating a 2.56% earnings surprise [1][2] Financial Performance - The company posted revenues of $98.62 million for the quarter ended March 2025, slightly missing the Zacks Consensus Estimate by 0.04%, and showing a year-over-year increase from $98.51 million [2] - Over the last four quarters, TriCo has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance - TriCo shares have declined approximately 11% since the beginning of the year, compared to a decline of 8.6% for the S&P 500 [3] - The current Zacks Rank for TriCo is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.80 on revenues of $100.95 million, and for the current fiscal year, it is $3.33 on revenues of $408.85 million [7] - The trend of estimate revisions for TriCo is mixed, which could change following the recent earnings report [6] Industry Context - The Zacks Industry Rank for Banks - West is in the bottom 42% of over 250 Zacks industries, suggesting that the industry outlook may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) [Executive Commentary](index=1&type=section&id=Executive%20Commentary) Management highlighted solid Q1 2025 loan and deposit growth and an 'Outstanding' CRA rating despite margin contraction from prior rate cuts - The company achieved solid loan and deposit growth in a challenging economic environment and received an **'Outstanding' CRA rating**[2](index=2&type=chunk) - **Net interest margin and income slightly decreased** as the impact of previous rate cuts affected floating-rate assets[3](index=3&type=chunk) - Management expects **earning asset yields to increase** and **funding costs to decrease** going forward[3](index=3&type=chunk) [Selected Financial Highlights](index=1&type=section&id=Selected%20Financial%20Highlights) The company reported lower Q1 2025 net income and EPS, a slightly compressed net interest margin, and mixed balance sheet and credit quality indicators Q1 2025 Key Performance Indicators | Metric | Q1 2025 | Trailing Quarter (Q4 2024) | Change | | :--- | :--- | :--- | :--- | | Net Income | $26.4 million | $29.0 million | -$2.6 million | | Diluted EPS | $0.80 | $0.88 | -$0.08 | | Net Interest Margin (FTE) | 3.73% | 3.76% | -3 bps | | Return on Average Assets (ROA) | 1.09% | 1.19% | -10 bps | | Return on Average Equity (ROE) | 8.54% | 9.30% | -76 bps | | Provision for Credit Losses | $3.7 million | $1.7 million | +$2.0 million | - **Loan balances increased by $52.3 million** (3.1% annualized) from the trailing quarter[5](index=5&type=chunk) - **Deposit balances grew by $117.8 million** (5.8% annualized) from the trailing quarter[5](index=5&type=chunk) - The **allowance for credit losses (ACL) to total loans increased to 1.88%** from 1.85% in the trailing quarter, and **non-performing assets to total assets rose to 0.59%** from 0.48%[6](index=6&type=chunk) [Financial Performance](index=3&type=section&id=Financial%20Performance) [Operating Results and Performance Ratios](index=3&type=section&id=Operating%20Results%20and%20Performance%20Ratios) Net income and EPS declined both sequentially and year-over-year in Q1 2025, driven by lower net interest income and a higher provision for credit losses Q1 2025 Income Statement vs. Trailing Quarter (Q4 2024) | (in thousands) | Q1 2025 | Q4 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $82,542 | $84,090 | (1.8)% | | Provision for Credit Losses | $3,728 | $1,702 | 119.0% | | Noninterest Income | $16,073 | $16,275 | (1.2)% | | Noninterest Expense | $59,585 | $59,775 | (0.3)% | | **Net Income** | **$26,363** | **$29,034** | **(9.2)%** | | **Diluted EPS** | **$0.80** | **$0.88** | **(9.1)%** | Q1 2025 Income Statement vs. Prior Year (Q1 2024) | (in thousands) | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $82,542 | $82,736 | (0.2)% | | Provision for Credit Losses | $3,728 | $4,305 | (13.4)% | | Noninterest Income | $16,073 | $15,771 | 1.9% | | Noninterest Expense | $59,585 | $56,504 | 5.5% | | **Net Income** | **$26,363** | **$27,749** | **(5.0)%** | | **Diluted EPS** | **$0.80** | **$0.83** | **(3.6)%** | [Net Interest Income and Net Interest Margin](index=5&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Q1 2025 net interest income and margin decreased sequentially due to lower loan income, though the margin improved slightly from the prior year Net Interest Income and Margin (FTE) - QoQ Change | Metric | Q1 2025 | Q4 2024 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income (FTE) | $82.8M | $84.4M | -$1.6M | | Net Interest Margin (FTE) | 3.73% | 3.76% | -3 bps | | Yield on Loans | 5.71% | 5.78% | -7 bps | | Cost of Interest-Bearing Deposits | 2.06% | 2.15% | -9 bps | - The decrease in net interest income was mainly caused by a **$2.8 million decline in interest income**, led by a $2.3 million reduction in loan income due to the impact of rate cuts on variable rate loans[21](index=21&type=chunk) - Year-over-year, the **cost of interest-bearing deposits increased by 23 basis points**, and the average balance of noninterest-bearing deposits decreased by $132.0 million[22](index=22&type=chunk) - The ratio of average noninterest-bearing deposits to total average deposits **declined to 30.7% in Q1 2025**, down from 31.8% in Q4 2024 and 33.8% in Q1 2024[23](index=23&type=chunk) [Non-interest Income](index=9&type=section&id=Non-interest%20Income) Non-interest income was nearly flat sequentially but increased year-over-year, influenced by a one-time loss on securities sales and gains from life insurance proceeds - Sequentially, non-interest income decreased by $0.2 million, primarily due to a **$1.1 million loss on the sale of investment securities**, offset by **$1.2 million in other income** from life insurance proceeds[34](index=34&type=chunk) - Year-over-year, non-interest income increased by $0.3 million, driven by a **$0.4 million (31.9%) increase in asset management and commission income**[35](index=35&type=chunk) Non-interest Income Breakdown (in thousands) | Category | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Total service charges and fees | $12,678 | $13,115 | $12,637 | | (Loss) gain on sale of investment securities | $(1,146) | $— | $— | | Asset management and commission income | $1,488 | $1,584 | $1,128 | | Other income | $1,439 | $108 | $497 | | **Total non-interest income** | **$16,073** | **$16,275** | **$15,771** | [Non-interest Expense](index=10&type=section&id=Non-interest%20Expense) Non-interest expense remained stable sequentially but rose year-over-year, primarily due to higher salaries and benefits from merit increases and strategic hiring - Compared to the trailing quarter, total non-interest expense decreased slightly by $0.2 million as a **$1.5 million rise in salaries and benefits** was offset by reductions in other expense lines[36](index=36&type=chunk) - Compared to the prior year, total non-interest expense **increased by $3.1 million (5.5%)**, mainly due to a **$2.6 million increase in salaries and benefits** from merit increases and strategic hiring[38](index=38&type=chunk) Non-interest Expense Breakdown (in thousands) | Category | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Salaries and benefits expense | $36,855 | $35,326 | $34,304 | | Total other non-interest expense | $22,730 | $24,449 | $22,200 | | **Total non-interest expense** | **$59,585** | **$59,775** | **$56,504** | [Balance Sheet and Capital](index=3&type=section&id=Balance%20Sheet%20and%20Capital) [Balance Sheet Overview](index=3&type=section&id=Balance%20Sheet%20Data) The balance sheet shows modest loan growth, an improved loan-to-deposit ratio, and an increase in shareholders' equity and book value per share - Total loans were **$6.8 billion**, up 0.3% YoY and 3.1% annualized QoQ[9](index=9&type=chunk) - The **loan-to-deposit ratio was 83.1%** at quarter-end, compared to 85.1% a year prior[9](index=9&type=chunk) - **Shareholders' equity grew by $34.6 million** in the quarter, driven by net income and a decrease in AOCI losses, partially offset by dividends and share repurchases[10](index=10&type=chunk) Book Value Per Share | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Book Value Per Share | $38.17 | $37.03 | | Tangible Book Value Per Share (Non-GAAP) | $28.73 | $27.60 | [Balance Sheet Changes](index=4&type=section&id=Balance%20Sheet%20Changes) Total assets grew from the prior quarter driven by deposit and loan growth, while year-over-year asset levels remained flat as investment decreases offset deposit increases Trailing Quarter Balance Sheet Change (Annualized %) | (in thousands) | March 31, 2025 | Dec 31, 2024 | Annualized % Change | | :--- | :--- | :--- | :--- | | Total Assets | $9,819,599 | $9,673,728 | 6.0% | | Total Loans | $6,820,774 | $6,768,523 | 3.1% | | Total Investments | $1,979,116 | $2,036,610 | (11.3)% | | Total Deposits | $8,205,332 | $8,087,576 | 5.8% | Year-Over-Year Balance Sheet Change | (in thousands) | March 31, 2025 | March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Assets | $9,819,599 | $9,813,767 | 0.1% | | Total Loans | $6,820,774 | $6,800,695 | 0.3% | | Total Investments | $1,979,116 | $2,221,555 | (10.9)% | | Total Deposits | $8,205,332 | $7,987,658 | 2.7% | | Total other borrowings | $91,706 | $392,409 | (76.6)% | [Credit Quality](index=7&type=section&id=Credit%20Quality) [Asset Quality and Credit Loss Provisioning](index=7&type=section&id=Asset%20Quality%20and%20Credit%20Loss%20Provisioning) Credit quality metrics weakened in Q1 2025, with a higher provision for credit losses, an increased ACL ratio, and a rise in non-performing and classified loans - The **provision for credit losses was $3.7 million**, compared to $1.7 million in Q4 2024 and $4.3 million in Q1 2024, with the increase mainly due to higher reserves on individually evaluated loans[25](index=25&type=chunk)[26](index=26&type=chunk) Key Credit Quality Ratios | Metric | Mar 31, 2025 | Dec 31, 2024 | Mar 31, 2024 | | :--- | :--- | :--- | :--- | | ACL to Total Loans | 1.88% | 1.85% | 1.83% | | Non-performing Assets to Total Assets | 0.59% | 0.48% | 0.37% | | Classified Loans to Total Loans | 1.94% | 1.74% | 1.12% | - **Non-performing loans increased to $54.9 million** from $44.1 million in the trailing quarter[29](index=29&type=chunk) - Management noted that while general economic indicators are improving, uncertainties related to inflation, monetary policy, and geopolitical risks warrant maintaining a **robust reserve level**[28](index=28&type=chunk) [Other Information](index=11&type=section&id=Other%20Information) [Provision for Income Taxes](index=11&type=section&id=Provision%20for%20Income%20Taxes) The company's effective tax rate for Q1 2025 was 25.3%, remaining below the statutory rate due to non-taxable revenues and tax credits Effective Tax Rate Comparison | Period | Effective Tax Rate | | :--- | :--- | | Q1 2025 | 25.3% | | Q4 2024 | 25.3% | | Q1 2024 | 26.4% | [Forward-Looking Statements](index=13&type=section&id=Forward-Looking%20Statements) The report includes cautionary language regarding forward-looking statements, highlighting various risks that could affect future performance - The report identifies numerous risks that could impact future results, such as **economic volatility, interest rate changes, regulatory impacts, credit quality deterioration, and cybersecurity incidents**[42](index=42&type=chunk) [Appendix: Financial Data and Non-GAAP Reconciliation](index=14&type=section&id=Appendix%3A%20Financial%20Data%20and%20Non-GAAP%20Reconciliation) The appendix contains detailed five-quarter financial data and reconciles GAAP to non-GAAP measures like tangible book value and pre-provision returns - Presents **condensed consolidated financial data** for the five quarters ending March 31, 2025[43](index=43&type=chunk)[44](index=44&type=chunk) - Provides **reconciliations for non-GAAP financial measures**, including tangible common equity, tangible book value per share, and pre-tax pre-provision returns[45](index=45&type=chunk)[47](index=47&type=chunk)

Part I [Item 1. Business](index=6&type=section&id=Item%201.%20Business) TriCo Bancshares, a bank holding company, operates Tri Counties Bank, a California-chartered commercial bank with approximately $9.7 billion in assets as of December 31, 2024, providing comprehensive banking services throughout California under extensive federal and state regulation. - TriCo Bancshares is the holding company for Tri Counties Bank, a California-chartered commercial bank headquartered in Chico, California[19](index=19&type=chunk) Loan Portfolio Composition (as of December 31, 2024) | Loan Category | Amount (millions) | Percentage of Total | | :--- | :--- | :--- | | Commercial Real Estate | $4,600 | 67.6% | | Consumer Loans | $1,300 | 18.9% | | Commercial and Industrial | $471.3 | 7.1% | | Real Estate Construction | $279.9 | 4.1% | - As of December 31, 2024, the company employed **1,201 people**, with a focus on a corporate culture valuing trust, respect, integrity, communication, and opportunity[27](index=27&type=chunk)[28](index=28&type=chunk) - The company and its bank are subject to extensive regulation by the Federal Reserve Board (FRB), the Federal Deposit Insurance Corporation (FDIC), and the California Department of Financial Protection & Innovation (DFPI)[36](index=36&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk) - The company is approaching the **$10 billion total asset threshold**, which will subject it to examination by the Consumer Financial Protection Bureau (CFPB) and regulations that cap debit card interchange fees (Durbin Amendment)[39](index=39&type=chunk)[90](index=90&type=chunk) [Item 1A. Risk Factors](index=16&type=section&id=Item%201A.%20Risk%20Factors) The company identifies several material risks to its business, including credit risk from its loan portfolio heavily concentrated in California real estate, geographic concentration, interest rate fluctuations, operational risks from cybersecurity threats, and increased regulatory burdens from approaching the $10 billion asset threshold. - The company's business is geographically concentrated in California, making it susceptible to local economic conditions, natural disasters, and declines in real estate values[109](index=109&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk) - A substantial portion of the loan portfolio consists of commercial real estate loans, totaling approximately **$4.6 billion (67.6% of total loans)** as of December 31, 2024, which carries significant credit risk[112](index=112&type=chunk) - The company's profitability is highly sensitive to interest rate risk, as changes can affect net interest income, loan origination, and the fair value of financial assets and liabilities[127](index=127&type=chunk) - In February 2023, the Bank experienced a criminal cyberattack that temporarily interrupted systems and resulted in the unauthorized access and acquisition of personal information for approximately **75,000 individuals**, leading to litigation and governmental inquiries[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk) - Crossing the **$10 billion asset threshold** will subject the company to increased regulation, including supervision by the CFPB and a cap on debit card interchange fees, which would reduce revenue[147](index=147&type=chunk)[148](index=148&type=chunk) [Item 1B. Unresolved Staff Comments](index=31&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC. - None[209](index=209&type=chunk) [Item 1C. Cybersecurity](index=31&type=section&id=Item%201C.%20Cybersecurity) The company outlines its cybersecurity risk management and strategy, guided by the NIST Cybersecurity Framework, with oversight from the CISO and the IT/Cybersecurity Committee of the Board of Directors, referencing the material cyberattack in February 2023 and other incidents. - The company's cybersecurity program is structured around the National Institute of Standards and Technology (NIST) Cybersecurity Framework to identify, assess, and manage risks[212](index=212&type=chunk) - Governance includes oversight from the Board of Directors' IT/Cybersecurity Committee, which meets at least quarterly and receives regular updates from the CISO[220](index=220&type=chunk) - The company experienced a material cyberattack in February 2023 that resulted in system interruptions and data disclosure, and also noted an incident in 2023 where a third-party vendor was affected by a vulnerability in the MOVEit Transfer file sharing software[221](index=221&type=chunk)[222](index=222&type=chunk) [Item 2. Properties](index=33&type=section&id=Item%202.%20Properties) As of December 31, 2024, the company operates through a network of 64 traditional branches, 4 in-store branches, and 8 loan production offices across 31 counties in California, owning 31 branch locations and leasing 30, in addition to other administrative and operational facilities. - The company's physical presence includes **64 traditional branches, 4 in-store branches, and 8 loan production offices** across California[224](index=224&type=chunk) - As of December 31, 2024, the company owned **31 branch office locations** and leased **30 branch office locations**, along with various other owned and leased administrative and operational buildings[225](index=225&type=chunk) [Item 3. Legal Proceedings](index=34&type=section&id=Item%203.%20Legal%20Proceedings) The company is subject to routine legal proceedings in the ordinary course of business, noting litigation related to the 2023 cybersecurity attack but stating no pending legal proceedings are expected to have a material adverse impact. - The company is subject to routine legal proceedings; while litigation from the 2023 cybersecurity attack is mentioned, management does not currently expect any pending proceedings to have a material adverse impact[226](index=226&type=chunk) [Item 4. Mine Safety Disclosures](index=34&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company. - Not applicable[227](index=227&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=35&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock is traded on the Nasdaq under the symbol "TCBK", with approximately 1,720 shareholders of record as of February 24, 2025, and a stock performance graph comparing its cumulative total shareholder return against the Russell 3000 Index and the S&P Western Bank Index for the five-year period ending December 31, 2024. - The company's common stock trades on the Nasdaq under the symbol **"TCBK"**[229](index=229&type=chunk) Cumulative Total Return (2019-2024) | Index | 12/31/2019 | 12/31/2024 | | :--- | :--- | :--- | | TriCo Bancshares | $100.00 | $123.34 | | Russell 3000 Index | $100.00 | $177.92 | | S&P Western Bank Index | $100.00 | $109.09 | [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2024, net income decreased 2.1% to $114.9 million, primarily due to a 7.2% decline in net interest income as higher funding costs compressed the net interest margin to 3.71%, partially offset by a significantly lower provision for credit losses, while total assets decreased slightly to $9.7 billion, with deposits growing 3.2% to $8.1 billion, allowing for an 85.8% reduction in higher-cost borrowings, and nonperforming assets increased to 0.48% of total assets, up from 0.35% in the prior year, while the allowance for credit losses remained robust at 1.85% of total loans. [Financial Overview](index=36&type=section&id=Financial%20Overview) For the fiscal year 2024, the company reported a net income of $114.9 million, a 2.1% decrease from the prior year, with diluted EPS down 1.7% to $3.46, primarily driven by higher interest expense causing net interest income to fall, partially mitigated by a lower provision for credit losses, and the tangible common equity to tangible assets ratio improved to 9.72% from 8.80% at the end of 2023. Key Financial Results (Year ended December 31) | Metric | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Net Income | $114.9M | $117.4M | $125.4M | | Diluted EPS | $3.46 | $3.52 | $3.83 | | Net Interest Income | $331.4M | $356.7M | $346.0M | | Provision for Credit Losses | $6.6M | $24.0M | $18.5M | | Return on Average Assets | 1.18% | 1.19% | 1.28% | | Return on Average Equity | 9.57% | 10.65% | 11.67% | - The tangible common equity to tangible assets ratio, a non-GAAP measure, increased to **9.72%** at December 31, 2024, up from **8.80%** at the end of 2023, primarily due to retained earnings[239](index=239&type=chunk)[246](index=246&type=chunk) [Results of Operations](index=40&type=section&id=Results%20of%20Operations) Net interest income (FTE) for 2024 decreased by 7.2% to $332.5 million, with the net interest margin contracting 25 basis points to 3.71% due to rising funding costs, while the provision for credit losses fell significantly to $6.6 million from $24.0 million in 2023, non-interest income grew 4.9% to $64.4 million, and non-interest expense remained relatively flat, increasing by only 0.4% to $234.1 million, with an effective tax rate of 25.9%. - Net interest income (FTE) decreased by **$25.7 million (7.2%)** in 2024, driven by a **25 basis point decline** in net interest margin to **3.71%** as the cost of interest-bearing liabilities rose 85 basis points[259](index=259&type=chunk) - The provision for credit losses decreased by **$17.4 million** to **$6.6 million** in 2024, primarily due to muted loan growth and more stable qualitative reserve levels compared to 2023[269](index=269&type=chunk) - Non-interest income increased by **$3.0 million (4.9%)** in 2024, mainly from higher service charges on deposit accounts and increased asset management income[273](index=273&type=chunk) - Non-interest expense increased by just **$0.9 million (0.4%)** in 2024, with higher salaries and data processing costs largely offset by lower intangible amortization and operational losses[276](index=276&type=chunk) [Financial Condition](index=46&type=section&id=Financial%20Condition) As of December 31, 2024, total assets stood at $9.7 billion, a slight decrease from the prior year, with the loan portfolio stable at $6.8 billion, commercial real estate representing 67.6%, and a key strategic shift involving using a $253.5 million increase in deposits and $269.3 million in investment security repayments to pay down $543.0 million in higher-cost borrowings, while total uninsured deposits were estimated at $2.6 billion. Year-End Balance Sheet Changes (2024 vs. 2023) | Balance Sheet Item | Dec 31, 2024 | Dec 31, 2023 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Assets | $9,673.7M | $9,910.1M | ($236.4M) | (2.4)% | | Total Loans | $6,768.5M | $6,794.5M | ($25.9M) | (0.4)% | | Total Deposits | $8,087.6M | $7,834.0M | $253.5M | 3.2% | | Total Other Borrowings | $89.6M | $632.6M | ($543.0M) | (85.8)% | - The loan portfolio composition remained heavily weighted towards commercial real estate, which constituted **67.6%** of total loans at year-end 2024[287](index=287&type=chunk) - Total uninsured deposits were estimated to be approximately **$2.6 billion** as of December 31, 2024[312](index=312&type=chunk) [Asset Quality and Nonperforming Assets](index=47&type=section&id=Asset%20Quality%20and%20Nonperforming%20Assets) Asset quality metrics showed some deterioration in 2024, with total nonperforming assets (NPAs) increasing by 35.5% to $46.9 million, representing 0.48% of total assets, up from 0.35% in 2023, driven by $27.6 million in new nonperforming loans, despite which the allowance for credit losses (ACL) was strengthened, increasing to $125.4 million, or 1.85% of total loans, which management believes is adequate. Nonperforming Assets (NPA) Trend | Metric | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | :--- | | Total NPAs | $46.9M | $34.6M | $24.8M | | NPAs to Total Assets | 0.48% | 0.35% | 0.25% | | Nonperforming Loans to Total Loans | 0.65% | 0.47% | 0.33% | - The increase in nonperforming assets during 2024 was primarily due to **$27.6 million** in additions of nonperforming loans, partially offset by **$11.5 million** in paydowns/upgrades and **$3.7 million** in net charge-offs[292](index=292&type=chunk) Allowance for Credit Losses (ACL) | Metric | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total ACL | $125.4M | $121.5M | | ACL to Gross Loans | 1.85% | 1.79% | [Market Risk Management and Liquidity](index=54&type=section&id=Market%20Risk%20Management%20and%20Liquidity) The company manages market risk, primarily interest rate risk, through simulation modeling, with a simulated 100 basis point instantaneous rate increase projected to decrease net interest income by 2.4% as of December 31, 2024, and maintained a strong liquidity position with $4.1 billion in primary liquidity sources, covering 160% of its estimated $2.6 billion in uninsured deposits. Interest Rate Risk Simulation (as of Dec 31, 2024) | Change in Interest Rates (Basis Points) | Estimated Change in Net Interest Income (NII) | | :--- | :--- | | +300 | (7.4)% | | +200 | (5.1)% | | +100 | (2.4)% | | -100 | 0.6% | - The simulation indicates the company's balance sheet is **liability-sensitive**, meaning net interest income is projected to decrease if interest rates rise and increase if they fall[322](index=322&type=chunk) Liquidity Position (as of Dec 31, 2024) | Metric | Amount (billions) | | :--- | :--- | | Total Primary Liquidity | $4.1 | | Estimated Uninsured Deposits | $2.6 | | Liquidity Coverage of Uninsured Deposits | 160% | [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=59&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section incorporates by reference the "Market Risk Management" discussion from Item 7, which details the company's approach to managing interest rate risk through simulation modeling and asset/liability management. - Information regarding market risk is incorporated by reference from the "Market Risk Management" section in Item 7[345](index=345&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=60&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for the fiscal years ended December 31, 2024, 2023, and 2022, including the Consolidated Balance Sheets, Statements of Income, Comprehensive Income, Changes in Shareholders' Equity, and Cash Flows, along with extensive notes providing detailed explanations of accounting policies and financial data, and Management's Report on Internal Control over Financial Reporting and the corresponding report from the independent registered public accounting firm, Moss Adams LLP. Consolidated Balance Sheet Summary (as of Dec 31) | (In thousands) | 2024 | 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $144,956 | $98,701 | | Total loans, net | $6,643,157 | $6,672,948 | | Total investment securities | $2,036,610 | $2,305,882 | | Goodwill | $304,442 | $304,442 | | **Total Assets** | **$9,673,728** | **$9,910,089** | | **Liabilities & Equity** | | | | Total deposits | $8,087,576 | $7,834,038 | | Other borrowings | $89,610 | $632,582 | | Junior subordinated debt | $101,191 | $101,099 | | **Total Liabilities** | **$8,452,821** | **$8,750,407** | | **Total Shareholders' Equity** | **$1,220,907** | **$1,159,682** | Consolidated Income Statement Summary (Year ended Dec 31) | (In thousands) | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Net Interest Income | $331,434 | $356,677 | $345,976 | | Provision for Credit Losses | $6,632 | $23,990 | $18,470 | | Noninterest Income | $64,407 | $61,400 | $63,046 | | Noninterest Expense | $234,105 | $233,182 | $216,645 | | **Net Income** | **$114,868** | **$117,390** | **$125,419** | - The report from the independent auditor, Moss Adams LLP, provides an unqualified opinion on the financial statements and the effectiveness of internal control over financial reporting, identifying the Allowance for Credit Losses, specifically the qualitative forecast factors, as a critical audit matter due to the significant management judgment involved[557](index=557&type=chunk)[563](index=563&type=chunk)[565](index=565&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=118&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure. - None[569](index=569&type=chunk) [Item 9A. Controls and Procedures](index=118&type=section&id=Item%209A.%20Controls%20and%20Procedures) Based on an evaluation as of December 31, 2024, the company's Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures were effective, with management's report on internal control over financial reporting and the auditor's attestation included in the report, and no material changes to internal controls identified in the fourth quarter of 2024. - The CEO and CFO concluded that as of December 31, 2024, the company's disclosure controls and procedures were effective[570](index=570&type=chunk) - No changes in internal control over financial reporting occurred during the fourth quarter of 2024 that materially affected, or are reasonably likely to materially affect, these controls[572](index=572&type=chunk) [Item 9B. Other Information](index=118&type=section&id=Item%209B.%20Other%20Information) All required information was disclosed in current reports on Form 8-K during the fourth quarter of 2024. - All required information was disclosed in Form 8-K filings during the fourth quarter of 2024[573](index=573&type=chunk) Part III [Items 10-14](index=119&type=section&id=Item%2010%2C%2011%2C%2012%2C%2013%2C%2014) Information required for Items 10 through 14, covering Directors, Executive Officers, Corporate Governance, Executive Compensation, Security Ownership, Certain Relationships, and Principal Accountant Fees, is incorporated by reference from the company's definitive proxy statement for the 2025 annual meeting of shareholders. - Information for Items 10, 11, 12, 13, and 14 is incorporated by reference from the company's Proxy Statement for the 2025 annual meeting of shareholders[576](index=576&type=chunk)[578](index=578&type=chunk)[579](index=579&type=chunk) Part IV [Item 15. Exhibits and Financial Statement Schedules](index=120&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements, schedules, and exhibits filed as part of the Form 10-K report, with consolidated financial statements included in Item 8 and financial statement schedules omitted as they are not applicable or the required information is included elsewhere, and a detailed index of all filed exhibits is provided. - This section contains the list of financial statements and exhibits filed with the report; financial statement schedules were omitted as they were not applicable[584](index=584&type=chunk) [Item 16. Form 10-K Summary](index=122&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company indicates that there is no Form 10-K summary. - None[591](index=591&type=chunk)

Group 1 - TriCo (TCBK) reported quarterly earnings of $0.88 per share, exceeding the Zacks Consensus Estimate of $0.82 per share, and up from $0.78 per share a year ago, representing an earnings surprise of 7.32% [1] - The company posted revenues of $100.37 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.43%, although this is a decrease from year-ago revenues of $102.66 million [2] - TriCo has surpassed consensus EPS estimates four times over the last four quarters and topped consensus revenue estimates two times during the same period [2] Group 2 - The stock has underperformed the market, losing about 1.7% since the beginning of the year compared to the S&P 500's gain of 3.5% [3] - The current consensus EPS estimate for the coming quarter is $0.76 on revenues of $96.95 million, and for the current fiscal year, it is $3.31 on revenues of $404.7 million [7] - The Zacks Industry Rank for Banks - West is currently in the top 32% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

[Financial Highlights & Executive Commentary](index=1&type=section&id=Financial%20Highlights%20%26%20Executive%20Commentary) This section provides an overview of TriCo Bancshares' financial performance and strategic commentary from its leadership [Executive Commentary and Selected Financial Highlights](index=1&type=section&id=Executive%20Commentary%20and%20Selected%20Financial%20Highlights) TriCo Bancshares reported a stable fourth quarter for 2024, with net income of **$29.0 million** and diluted EPS of **$0.88**, consistent with the previous quarter, driven by expanded net interest margin and income due to reduced funding costs and effective asset deployment - CEO Rick Smith emphasized the company's focus on navigating industry changes to create significant opportunities for performance elevation as it approaches its 50th anniversary[2](index=2&type=chunk) - CFO Peter Wiese noted that net interest margin and income expanded for the second straight quarter, driven by lower funding costs and deploying cash into higher-yielding assets, despite three Federal Funds rate cuts[3](index=3&type=chunk) Q4 2024 Key Financial Metrics | Metric | Q4 2024 Value | Change vs. Q3 2024 | Change vs. Q4 2023 | | :--- | :--- | :--- | :--- | | Net Income | $29.0 million | -$0.1 million | +$3.0 million | | Diluted EPS | $0.88 | Unchanged | +$0.10 | | Net Interest Margin (FTE) | 3.76% | +5 bps | -5 bps | | Loan Balances (in billions) | $6.77 | +$84.6 million (5.1% ann.) | -$25.9 million (-0.4%) | | Deposit Balances (in billions) | $8.09 | +$50.5 million (2.5% ann.) | +$253.5 million (3.2%) | | Return on Average Assets | 1.19% | -1 bp | +14 bps | | Return on Average Equity | 9.30% | -22 bps | -13 bps | | Efficiency Ratio | 59.56% | -46 bps | +85 bps | | ACL to Total Loans | 1.85% | Unchanged | +6 bps | [Financial Performance Analysis](index=3&type=section&id=Financial%20Performance%20Analysis) This section details the company's operating results, balance sheet changes, net interest income, asset quality, and expense management [Operating Results and Performance Ratios](index=3&type=section&id=Operating%20Results%20and%20Performance%20Ratios) In Q4 2024, net income was **$29.0 million**, nearly flat compared to Q3 2024 but up **11.3%** from Q4 2023, with diluted EPS remaining at **$0.88** QoQ and increasing by **12.8%** YoY, while the full year 2024 net income slightly decreased by **2.1%** to **$114.9 million** Q4 2024 vs. Q3 2024 Performance | Metric | Q4 2024 (in millions) | Q3 2024 (in millions) | Change (in millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $84.09 | $82.611 | $1.479 | 1.8% | | Provision for Credit Losses | $1.702 | $0.22 | $1.482 | 673.6% | | Net Income | $29.034 | $29.051 | ($0.017) | (0.1)% | | Diluted EPS | $0.88 | $0.88 | $0.00 | 0.0% | Q4 2024 vs. Q4 2023 Performance | Metric | Q4 2024 (in millions) | Q4 2023 (in millions) | Change (in millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Income | $29.034 | $26.075 | $2.959 | 11.3% | | Diluted EPS | $0.88 | $0.78 | $0.10 | 12.8% | | Provision for Credit Losses | $1.702 | $5.99 | ($4.288) | (71.6)% | | Dividends per share | $0.33 | $0.30 | $0.03 | 10.0% | Full Year 2024 vs. 2023 Performance | Metric | FY 2024 (in millions) | FY 2023 (in millions) | Change (in millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $331.434 | $356.677 | ($25.243) | (7.1)% | | Net Income | $114.868 | $117.39 | ($2.522) | (2.1)% | | Diluted EPS | $3.46 | $3.52 | ($0.06) | (1.7)% | | Dividends per share | $1.32 | $1.20 | $0.12 | 10.0% | [Balance Sheet Analysis](index=4&type=section&id=Balance%20Sheet%20Analysis) As of December 31, 2024, total assets stood at **$9.67 billion**, a **2.4%** decrease year-over-year, with total loans stable at **$6.8 billion** and deposits growing **3.2%** YoY to **$8.09 billion**, while primary liquidity remained strong at **$4.1 billion**, covering **160%** of estimated uninsured deposits Balance Sheet Changes (Q4 2024 vs Q3 2024) | Balance Sheet Item | Dec 31, 2024 (in billions) | Sep 30, 2024 (in billions) | $ Change (in millions) | Annualized % Change | | :--- | :--- | :--- | :--- | :--- | | Total Assets | $9.674 | $9.824 | ($150.162) | (6.1)% | | Total Loans | $6.769 | $6.684 | $84.632 | 5.1% | | Total Deposits | $8.088 | $8.037 | $50.485 | 2.5% | | Total Other Borrowings (in millions) | $89.61 | $266.767 | ($177.157) | (265.6)% | Balance Sheet Changes (Year-Over-Year) | Balance Sheet Item | Dec 31, 2024 (in billions) | Dec 31, 2023 (in billions) | $ Change (in millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Assets | $9.674 | $9.91 | ($236.361) | (2.4)% | | Total Loans | $6.769 | $6.794 | ($25.947) | (0.4)% | | Total Investments (in billions) | $2.037 | $2.306 | ($269.272) | (11.7)% | | Total Deposits | $8.088 | $7.834 | $253.538 | 3.2% | | Total Other Borrowings (in millions) | $89.61 | $632.582 | ($542.972) | (85.8)% | - Shareholders' equity decreased by **$18.1 million** in Q4 2024 due to a **$35.5 million** increase in accumulated other comprehensive losses and **$10.9 million** in dividends, which offset the **$29.0 million** in net income, resulting in a decrease in book value per share from **$37.55** to **$37.03**[9](index=9&type=chunk) - Total primary liquidity was **$4.12 billion** as of December 31, 2024, representing **51%** of total deposits and **160%** of estimated uninsured deposits, indicating a strong liquidity position[15](index=15&type=chunk) [Net Interest Income and Net Interest Margin](index=5&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Net interest income (FTE) increased by **1.8%** QoQ to **$84.4 million** in Q4 2024, while the net interest margin (NIM) expanded by **5 basis points** to **3.76%**, primarily driven by a **$2.0 million** decrease in interest expense from lower borrowing balances and an improved deposit mix - Net interest income and net interest margin increased for the second consecutive quarter, rising from **$82.3 million** and **3.68%** in Q2 2024 to **$84.4 million** and **3.76%** in Q4 2024[16](index=16&type=chunk) Net Interest Income and Margin (FTE) - Quarterly Comparison | Metric | Q4 2024 (in millions) | Q3 2024 (in millions) | Change (in millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Interest Income | $116.842 | $117.347 | ($0.505) | (0.4)% | | Interest Expense | $32.752 | $34.736 | $1.984 | (5.7)% | | Net Interest Income (FTE) | $84.356 | $82.88 | $1.476 | 1.8% | | Net Interest Margin (FTE) | 3.76% | 3.71% | +0.05% | - | Net Interest Income and Margin (FTE) - Year-Over-Year Comparison | Metric | Q4 2024 (in millions) | Q4 2023 (in millions) | Change (in millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Interest Income | $116.842 | $115.909 | $0.933 | 0.8% | | Interest Expense | $32.752 | $29.292 | ($3.46) | 11.8% | | Net Interest Income (FTE) | $84.356 | $86.977 | ($2.621) | (3.0)% | | Net Interest Margin (FTE) | 3.76% | 3.81% | (0.05)% | - | - The QoQ increase in net interest income was mainly due to a **$1.1 million** drop in interest expense on borrowings and a **$0.8 million** decrease in deposit interest expense, which offset a **$0.5 million** decline in interest income from earning assets[23](index=23&type=chunk) [Asset Quality and Credit Loss Provisioning](index=8&type=section&id=Asset%20Quality%20and%20Credit%20Loss%20Provisioning) The provision for credit losses was **$1.7 million** in Q4 2024, up from **$0.2 million** in Q3 2024 but significantly lower than the **$6.0 million** in Q4 2023, with the allowance for credit losses (ACL) to total loans ratio remaining stable at **1.85%** QoQ Provision for Credit Losses | Metric | Q4 2024 (in thousands) | Q3 2024 (in thousands) | Q4 2023 (in thousands) | | :--- | :--- | :--- | :--- | | Total provision for credit losses | $1,702 | $220 | $5,990 | Allowance for Credit Losses (ACL) Roll-Forward (Quarterly) | Metric | Q4 2024 (in thousands) | Q4 2023 (in thousands) | | :--- | :--- | :--- | | Balance, beginning of period | $123,760 | $115,812 | | Provision for credit losses | $1,812 | $6,040 | | Loans charged-off | ($722) | ($749) | | Recoveries | $516 | $419 | | Balance, end of period | $125,366 | $121,522 | - Non-performing loans increased by **$2.5 million** during the quarter to **$44.1 million** and non-performing assets to total assets rose to **0.48%** from **0.45%** in the prior quarter[32](index=32&type=chunk)[35](index=35&type=chunk) - The ratio of classified loans to total loans was **1.74%** at year-end, up from **1.29%** a year prior, but remains consistent with pre-pandemic levels and reflects a conservative approach to credit risk monitoring[33](index=33&type=chunk) [Non-interest Income](index=10&type=section&id=Non-interest%20Income) Total non-interest income for Q4 2024 was **$16.3 million**, a slight decrease of **1.3%** from Q3 2024, primarily due to a **$0.4 million** decline in the value of equity securities, while year-over-year, non-interest income increased by **1.5%** Non-interest Income Comparison (Q4 2024 vs. Q3 2024) | Metric | Q4 2024 (in thousands) | Q3 2024 (in thousands) | Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Total service charges and fees | $13,115 | $12,782 | $333 | 2.6% | | (Loss) gain on marketable equity securities | ($81) | $356 | ($437) | (122.8)% | | Total non-interest income | $16,275 | $16,495 | ($220) | (1.3)% | Non-interest Income Comparison (Q4 2024 vs. Q4 2023) | Metric | Q4 2024 (in thousands) | Q4 2023 (in thousands) | Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Asset management and commission income | $1,584 | $1,284 | $300 | 23.4% | | Total non-interest income | $16,275 | $16,040 | $235 | 1.5% | - For the full year 2024, non-interest income increased by **$3.0 million** (**4.9%**) compared to 2023, driven by a **$1.9 million** increase in service charges on deposit accounts and a **$1.1 million** increase in asset management income[39](index=39&type=chunk) [Non-interest Expense](index=12&type=section&id=Non-interest%20Expense) Non-interest expense in Q4 2024 was **$59.8 million**, a marginal increase of **0.5%** from Q3 2024, with salaries and benefits, the largest component, decreasing slightly by **0.6%** QoQ, while full year 2024 expenses were nearly flat, increasing just **0.4%** to **$234.1 million** Non-interest Expense Comparison (Q4 2024 vs. Q3 2024) | Metric | Q4 2024 (in thousands) | Q3 2024 (in thousands) | Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Total salaries and benefits expense | $35,326 | $35,550 | ($224) | (0.6)% | | Data processing and software | $5,493 | $5,258 | $235 | 4.5% | | Total non-interest expense | $59,775 | $59,487 | $288 | 0.5% | Non-interest Expense Comparison (Q4 2024 vs. Q4 2023) | Metric | Q4 2024 (in thousands) | Q4 2023 (in thousands) | Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Total salaries and benefits expense | $35,326 | $34,055 | $1,271 | 3.7% | | Other miscellaneous expense | $4,611 | $6,656 | ($2,045) | (30.7)% | | Total non-interest expense | $59,775 | $60,267 | ($492) | (0.8)% | - For the full year 2024, total non-interest expense increased by only **0.4%**, as a **$4.8 million** (**3.5%**) rise in salaries and benefits and a **$2.0 million** (**10.7%**) increase in data processing/software costs were largely offset by a **$2.0 million** decline in intangible amortization and a **$0.8 million** reduction in operational losses[43](index=43&type=chunk) [Provision for Income Taxes](index=13&type=section&id=Provision%20for%20Income%20Taxes) The company's effective tax rate was **25.3%** for Q4 2024, down from **26.3%** in the prior quarter, and **25.9%** for the full year 2024, a decrease from **28.4%** in 2023, remaining below the blended statutory rate of **29.6%** due to non-taxable revenues and tax credits - The effective tax rate was **25.3%** for Q4 2024 and **25.9%** for the full year 2024, which is lower than the blended statutory rate of approximately **29.6%** due to non-taxable revenues and tax credits[44](index=44&type=chunk) [Supplementary Information](index=15&type=section&id=Supplementary%20Information) This section provides essential background on TriCo Bancshares and its forward-looking statements, along with detailed unaudited financial data and non-GAAP reconciliations [About TriCo Bancshares & Forward-Looking Statements](index=15&type=section&id=About%20TriCo%20Bancshares%20%26%20Forward-Looking%20Statements) This section provides a corporate overview of TriCo Bancshares and its subsidiary, Tri Counties Bank, highlighting its history since 1975 and its range of banking services across California, alongside a standard forward-looking statements disclaimer outlining numerous risks that could cause actual results to differ from expectations - TriCo Bancshares, established in **1975** and headquartered in Chico, California, operates through its subsidiary Tri Counties Bank, offering a wide range of consumer, small business, and commercial banking services throughout California[47](index=47&type=chunk) - Key risks identified include economic conditions, interest rate policies of the Federal Reserve, inflation, regulatory changes, credit quality of the loan portfolio, cybersecurity incidents, and competition from traditional and non-traditional financial companies[48](index=48&type=chunk) [Condensed Consolidated Financial Data (Unaudited)](index=16&type=section&id=Condensed%20Consolidated%20Financial%20Data%20(Unaudited)) This section provides detailed unaudited financial tables for the past five quarters, including income statement data, per-share metrics, credit quality indicators, key financial ratios, and quarter-end balance sheet figures, offering a granular, comparative view of the company's performance and financial position over time Quarterly Financial Summary (Last 5 Quarters) | Metric | Q4 2024 (in millions) | Q3 2024 (in millions) | Q2 2024 (in millions) | Q1 2024 (in millions) | Q4 2023 (in millions) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Income Statement** | | | | | | | Net Interest Income | $84.09 | $82.611 | $81.997 | $82.736 | $86.617 | | Net Income | $29.034 | $29.051 | $29.034 | $27.749 | $26.075 | | Diluted EPS | $0.88 | $0.88 | $0.87 | $0.83 | $0.78 | | **Balance Sheet (End of Period)** | | | | | | | Total Assets (in billions) | $9.674 | $9.824 | $9.741 | $9.814 | $9.91 | | Total Loans, Gross (in billions) | $6.769 | $6.684 | $6.743 | $6.801 | $6.794 | | Total Deposits (in billions) | $8.088 | $8.037 | $8.05 | $7.988 | $7.834 | | Total Shareholders' Equity (in billions) | $1.221 | $1.239 | $1.175 | $1.163 | $1.16 | | **Key Ratios** | | | | | | | Return on Average Assets | 1.19% | 1.20% | 1.19% | 1.13% | 1.05% | | Net Interest Margin (FTE) | 3.76% | 3.71% | 3.68% | 3.68% | 3.81% | | Efficiency Ratio | 59.56% | 60.02% | 59.61% | 57.36% | 58.71% | | ACL to Gross Loans | 1.85% | 1.85% | 1.83% | 1.83% | 1.79% | [Non-GAAP Financial Measures (Unaudited)](index=18&type=section&id=Non-GAAP%20Financial%20Measures%20(Unaudited)) This section reconciles GAAP to non-GAAP financial measures to provide what management believes is a clearer assessment of core operational trends, with key non-GAAP metrics including tangible book value per share of **$27.60** and return on average tangible common equity of **12.73%** for Q4 2024 Tangible Book Value Per Share Reconciliation (Non-GAAP) | Metric | Dec 31, 2024 (in thousands) | Sep 30, 2024 (in thousands) | Dec 31, 2023 (in thousands) | | :--- | :--- | :--- | :--- | | Shareholders' equity (GAAP) | $1,220,907 | $1,239,015 | $1,159,682 | | Less: Goodwill and other intangibles | $310,874 | $311,904 | $314,994 | | Tangible shareholders' equity (Non-GAAP) | $910,033 | $927,111 | $844,688 | | Common shares outstanding | 32,970,425 | 33,000,508 | 33,268,102 | | **Tangible book value per share (Non-GAAP)** | **$27.60** | **$28.09** | **$25.39** | Return on Average Tangible Common Equity (Non-GAAP) | Metric (annualized) | Q4 2024 | Q3 2024 | Q4 2023 | | :--- | :--- | :--- | :--- | | Return on average equity (GAAP) | 9.30% | 9.52% | 9.43% | | **Return on average tangible common equity (Non-GAAP)** | **12.73%** | **13.13%** | **13.67%** | - The net interest margin (FTE) of **3.76%** for Q4 2024 includes a **5 basis point** benefit from the accretion of discounts on acquired loans, with the core NIM being **3.71%** excluding this effect[51](index=51&type=chunk)

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Item 1 – Financial Statements (Unaudited)](index=3&type=section&id=Item%201%20%E2%80%93%20Financial%20Statements%20(Unaudited)) This section presents TriCo Bancshares' unaudited condensed consolidated financial statements for the periods ended September 30, 2024 [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The condensed consolidated financial statements show total assets decreased to **$9.82 billion** as of September 30, 2024, with nine-month net income at **$85.8 million** and diluted EPS at **$2.58**, while total deposits increased to **$8.04 billion** Condensed Consolidated Balance Sheets (Unaudited) | (In thousands) | September 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$9,823,890** | **$9,910,089** | | Total loans, net | $6,560,131 | $6,672,948 | | Total investment securities | $2,116,469 | $2,305,882 | | Goodwill | $304,442 | $304,442 | | **Total Liabilities** | **$8,584,875** | **$8,750,407** | | Total deposits | $8,037,091 | $7,834,038 | | Other borrowings | $266,767 | $632,582 | | **Total Shareholders' Equity** | **$1,239,015** | **$1,159,682** | Condensed Consolidated Statements of Income (Unaudited) | (In thousands, except per share data) | Nine months ended Sep 30, 2024 | Nine months ended Sep 30, 2023 | | :--- | :--- | :--- | | Net interest income | $247,344 | $270,060 | | Provision for credit losses | $4,930 | $18,000 | | Non-interest income | $48,132 | $45,360 | | Non-interest expense | $174,330 | $172,915 | | **Net income** | **$85,834** | **$91,315** | | **Diluted earnings per share** | **$2.58** | **$2.74** | Condensed Consolidated Statements of Cash Flows (Unaudited) | (In thousands) | Nine months ended Sep 30, 2024 | Nine months ended Sep 30, 2023 | | :--- | :--- | :--- | | Net cash from operating activities | $85,467 | $102,377 | | Net cash from investing activities | $344,951 | $(13,635) | | Net cash used by financing activities | $(209,005) | $(84,873) | | **Net change in cash and cash equivalents** | **$221,413** | **$3,869** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, including the Allowance for Credit Losses methodology, and provide disclosures on investment securities, loan portfolios, leases, deposits, borrowings, equity, fair value measurements, and regulatory capital adequacy - The Company operates as a single business segment, community banking, primarily serving customers throughout California[19](index=19&type=chunk)[21](index=21&type=chunk) - The Allowance for Credit Losses (ACL) is estimated using historical loss data since Q4 2008, adjusted for current conditions and forward-looking macroeconomic scenarios, including California unemployment rates, household debt, and U.S. GDP[28](index=28&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Item%202%20%E2%80%93%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance and condition, noting stable **$29.1 million** net income and a **3.71%** net interest margin for Q3 2024, while maintaining strong capital and liquidity positions Financial Highlights - Q3 2024 | Metric | Q3 2024 | Q2 2024 | | :--- | :--- | :--- | | Net Income | $29.1M | $29.0M | | Diluted EPS | $0.88 | $0.87 | | Net Interest Margin (FTE) | 3.71% | 3.68% | | Return on Average Assets | 1.20% | 1.19% | | Return on Average Equity | 9.52% | 9.99% | | Efficiency Ratio | 60.02% | 59.61% | - The company's cycle-to-date deposit beta, measuring the change in deposit costs relative to FOMC rate actions since March 2022, was **31.2%**[151](index=151&type=chunk) - The allowance for credit losses (ACL) to total loans was **1.85%** as of September 30, 2024, reflecting management's view of persistent credit weaknesses in the economy[151](index=151&type=chunk) [Net Interest Income](index=48&type=section&id=Net%20Interest%20Income) Net interest income (FTE) for Q3 2024 was **$82.9 million**, a **6%** year-over-year decrease driven by increased deposit interest expense, despite higher loan yields, resulting in a **3.71%** net interest margin Net Interest Income (FTE) Comparison | (in thousands) | Q3 2024 | Q3 2023 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Interest Income | $117,347 | $112,380 | $4,967 | 4.4% | | Interest Expense | ($34,736) | ($24,257) | ($10,479) | 43.2% | | **Net Interest Income (FTE)** | **$82,880** | **$88,528** | **($5,648)** | **(6.4)%** | | **Net Interest Margin (FTE)** | **3.71%** | **3.88%** | **(0.17%)** | - | - The decrease in net interest income year-over-year was primarily due to a significant increase in deposit interest expense, which rose by **$13.3 million**, and a **$423.0 million** decrease in average noninterest-bearing deposits as customers moved funds to higher-yielding accounts[163](index=163&type=chunk) - Accretion of discounts from acquired loans contributed **$1.0 million** to interest income in Q3 2024, adding **6 basis points** to loan yields[160](index=160&type=chunk)[163](index=163&type=chunk) [Asset Quality and Credit Loss Provisioning](index=51&type=section&id=Asset%20Quality%20and%20Credit%20Loss%20Provisioning) The provision for credit losses was **$0.2 million** in Q3 2024, while nonperforming assets increased to **$44.4 million** and classified loans rose to **1.76%** of total loans, though management deems the allowance for credit losses adequate Nonperforming Assets (NPAs) | (in thousands) | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total nonaccrual loans | $41,551 | $31,880 | | Foreclosed assets | $2,764 | $2,704 | | **Total nonperforming assets** | **$44,400** | **$34,595** | | NPAs to total assets | 0.45% | 0.35% | | ACL to nonperforming loans | 297% | 381% | - Nonperforming assets increased by **$9.1 million (25.9%)** during Q3 2024, primarily driven by new nonperforming loans of **$12.0 million**[198](index=198&type=chunk) Classified and Past Due Loans | Ratio | Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | | :--- | :--- | :--- | :--- | | Classified loans to total loans | 1.76% | 1.56% | 1.22% | | Loans past due 30+ days to total loans | 0.57% | 0.45% | 0.12% | [Non-interest Income](index=53&type=section&id=Non-interest%20Income) Non-interest income for Q3 2024 increased **3.2%** year-over-year to **$16.5 million**, driven by gains in asset management and marketable equity securities, partially offset by lower service charges and fees Non-interest Income Comparison (Q3 2024 vs Q3 2023) | (in thousands) | Q3 2024 | Q3 2023 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total service charges and fees | $12,782 | $13,075 | ($293) | (2.2)% | | Asset management and commission income | $1,502 | $1,141 | $361 | 31.6% | | (Loss) gain on marketable equity securities | $356 | ($81) | $437 | (539.5)% | | **Total non-interest income** | **$16,495** | **$15,984** | **$511** | **3.2%** | [Non-interest Expense](index=55&type=section&id=Non-interest%20Expense) Total non-interest expense for Q3 2024 rose **2.8%** year-over-year to **$59.5 million**, primarily due to a **$1.1 million** increase in salaries and benefits expense, partially offset by lower intangible amortization for the nine-month period Non-interest Expense Comparison (Q3 2024 vs Q3 2023) | (in thousands) | Q3 2024 | Q3 2023 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Salaries and benefits expense | $35,550 | $34,463 | $1,087 | 3.2% | | Intangible amortization | $1,030 | $1,590 | ($560) | (35.2)% | | **Total non-interest expense** | **$59,487** | **$57,878** | **$1,609** | **2.8%** | [Financial Condition](index=56&type=section&id=Financial%20Condition) As of September 30, 2024, total assets were **$9.82 billion**, with total loans decreasing by **$58.6 million** to **$6.68 billion**, while total deposits modestly increased by **$13.1 million** to **$8.04 billion** Balance Sheet Changes (Q3 2024 vs Q2 2024) | (in thousands) | Sep 30, 2024 | Jun 30, 2024 | $ Change | | :--- | :--- | :--- | :--- | | Total assets | $9,823,890 | $9,741,399 | $82,491 | | Total loans | $6,683,891 | $6,742,526 | ($58,635) | | Total deposits | $8,037,091 | $8,050,230 | ($13,139) | - Loan originations and draws totaled approximately **$310.1 million** in Q3 2024, while payoffs and repayments were higher at **$368.7 million**, leading to a net decrease in the loan portfolio[189](index=189&type=chunk) [Capital Resources and Liquidity](index=63&type=section&id=Capital%20Resources%20and%20Liquidity) The company maintains a strong capital position, with a Common Equity Tier 1 capital ratio of **13.1%** and primary liquidity sources totaling **$4.1 billion**, exceeding all regulatory requirements Consolidated Capital Ratios | Ratio | Sep 30, 2024 | Minimum Requirement | | :--- | :--- | :--- | | Total risk based capital | 15.6% | 10.5% | | Tier I capital | 13.8% | 8.5% | | Common equity Tier 1 capital | 13.1% | 7.0% | | Leverage | 11.6% | 4.0% | - Book value per share grew to **$37.55** at September 30, 2024, from **$32.18** a year prior, with tangible book value per share increasing to **$28.09** from **$22.67** over the same period[212](index=212&type=chunk) - During the nine months ended September 30, 2024, the Company repurchased **344,324 shares** for **$12.5 million** under its 2021 Repurchase Plan[211](index=211&type=chunk) [Item 3 – Quantitative and Qualitative Disclosures about Market Risk](index=63&type=section&id=Item%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's market risk disclosure primarily focuses on interest rate risk, with a **100 basis point** rate increase estimated to decrease net interest income by **2.4%** over 12 months, managed through its asset and liability mix Interest Rate Shock Scenario (as of Sep 30, 2024) | Change in Interest Rates (Basis Points) | Estimated Change in Net Interest Income (NII) | Estimated Change in Market Value of Equity (MVE) | | :--- | :--- | :--- | | +300 (shock) | (7.4)% | (5.6)% | | +200 (shock) | (5.0)% | (3.7)% | | +100 (shock) | (2.4)% | (0.8)% | | -100 (shock) | 0.2% | (2.8)% | - As of September 30, 2024, the loan portfolio included **$4.2 billion** in adjustable-rate loans, with **$891.6 million** floating based on the Wall Street Prime index[224](index=224&type=chunk) [Item 4 – Controls and Procedures](index=63&type=section&id=Item%204%20%E2%80%93%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of September 30, 2024, 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 September 30, 2024[227](index=227&type=chunk) [PART II – OTHER INFORMATION](index=64&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Item 1 – Legal Proceedings](index=64&type=section&id=Item%201%20%E2%80%93%20Legal%20Proceedings) The company is involved in various ordinary course legal proceedings, which management does not expect to materially adversely affect its financial position, results of operations, or cash flows - The company does not expect that the ultimate costs to resolve ordinary course legal proceedings will have a material adverse effect on its consolidated financial position, results of operations, or cash flows[229](index=229&type=chunk) [Item 1A – Risk Factors](index=64&type=section&id=Item%201A%20%E2%80%93%20Risk%20Factors) This section refers investors to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2023, with no new risk factors introduced in this quarterly report - There are no new risk factors disclosed in this report; investors are referred to the risk factors in the Annual Report on Form 10-K for the year ended December 31, 2023[230](index=230&type=chunk) [Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds](index=64&type=section&id=Item%202%20%E2%80%93%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2024, the company repurchased **1,551 shares** at an average price of **$42.98** per share, primarily from employee equity incentive plans, with **865,478 shares** remaining available under the authorized repurchase plan Share Repurchases (Q3 2024) | Period | Total Shares Purchased | Average Price Paid | Shares Purchased as Part of Public Plan | Max Shares Remaining Under Plan | | :--- | :--- | :--- | :--- | :--- | | July 2024 | 1,551 | $42.98 | — | 865,478 | | August 2024 | — | — | — | 865,478 | | September 2024 | — | — | — | 865,478 | | **Total** | **1,551** | **$42.98** | **—** | **865,478** | [Item 5 – Other Information](index=64&type=section&id=Item%205%20%E2%80%93%20Other%20Information) The company adopted new RSU and PSU award agreements for executives under the 2019 Equity Incentive Plan, with PSU vesting tied to total shareholder return relative to the KBW Nasdaq Regional Banking Index over three years - The company adopted new forms for RSU and PSU agreements for executives under the 2019 Equity Incentive Plan[232](index=232&type=chunk) - PSU vesting (**0% to 150%** of target) is based on the company's total shareholder return relative to the KBW Nasdaq Regional Banking Index over a three-year period[234](index=234&type=chunk) - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during the third quarter of 2024[238](index=238&type=chunk) [Item 6 – Exhibits](index=65&type=section&id=Item%206%20%E2%80%93%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including equity incentive agreements, CEO and CFO certifications, and XBRL data files - Exhibits filed include forms of Restricted Stock Unit and Performance Award agreements, CEO/CFO certifications (Rule 13a-14(a) and Section 1350), and XBRL instance documents[239](index=239&type=chunk)

TriCo (TCBK) came out with quarterly earnings of $0.88 per share, beating the Zacks Consensus Estimate of $0.82 per share. This compares to earnings of $0.92 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.32%. A quarter ago, it was expected that this holding company for Tri Counties Bank would post earnings of $0.80 per share when it actually produced earnings of $0.87, delivering a surprise of 8.75%.Over the last four quar ...

Exhibit 99.1 For Immediate Release | October 24, 2024 | Chico, California & trico bancshares TriCo Bancshares reports third quarter 2024 net income of $29.1 million, diluted EPS of $0.88 3Q24 Financial Highlights • Net income was $29.1 million or $0.88 per diluted share as compared to $29.0 million or $0.87 per diluted share in the trailing quarter • Deposit balances decreased $13.1 million or 0.7% (annualized) from the trailing quarter and have increased $27.4 million or 0.3% (annualized) from the same qua ...

Investors might want to bet on TriCo (TCBK) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. Since a changing earnings ...

TriCo (TCBK) came out with quarterly earnings of $0.87 per share, beating the Zacks Consensus Estimate of $0.80 per share. This compares to earnings of $0.75 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 8.75%. A quarter ago, it was expected that this holding company for Tri Counties Bank would post earnings of $0.81 per share when it actually produced earnings of $0.83, delivering a surprise of 2.47%. Over the last four qua ...