TriCo Bancshares Reports Fourth Quarter 2025 Net Income of $33.6 Million & Authorization of New Share Repurchase Program

Key Terms

net interest margin financial

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

basis points financial

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

loan to deposit ratio financial

The loan-to-deposit ratio compares the amount a bank has lent out to customers with the money customers have kept on deposit; it’s calculated by dividing total loans by total deposits. It matters to investors because it signals how aggressively a bank is using its deposit base—too high suggests the bank may run low on ready cash and face funding stress, while too low can mean the bank is not earning enough from its capital, like a homeowner who lends most of their savings and has little left for emergencies.

efficiency ratio financial

A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.

allowance for credit losses financial

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

non-performing assets financial

Loans or other credit exposures that are not producing expected income because borrowers have stopped making scheduled payments for a significant period (commonly around 90 days). Think of it like a business lending money that has gone quiet — the cash flow stops while the lender still carries the debt on its books. High levels of non-performing assets matter to investors because they reduce a lender’s earnings, tie up capital that could be used for growth, and signal higher risk of future losses.

fully tax-equivalent financial

Fully tax-equivalent describes an income or yield that has been adjusted to what it would be if it were taxable, using an investor’s tax rate so different investments can be compared on an equal basis. Think of it as converting a price shown after a coupon back to the original price so you can fairly compare it with other items; for investors it makes tax-free interest or dividends comparable to taxable alternatives and helps decide which offers the better after-tax return.

collateralized loan obligations financial

A collateralized loan obligation is a financial product that pools many corporate loans and repackages them into slices sold to investors, with some slices offering steady, lower returns and others offering higher returns but more risk. Like splitting a pizza into pieces for different tastes, CLOs let investors pick their preferred risk level and help banks fund lending, so changes in CLO performance influence credit availability and can move markets.

4Q25 Financial Highlights

• Net income was $33.6 million or $1.03 per diluted share as compared to $34.0 million or $1.04 per diluted share in the trailing quarter, and an increase of $4.6 million or 15.8% from the fourth quarter of 2024
• Net interest income (FTE) was $92.5 million, an increase of $2.7 million or 2.97% over the trailing quarter; net interest margin (FTE) was 4.02% in the recent quarter, an increase of 10 basis points over 3.92% in the trailing quarter
• Loan balances increased $104.3 million or 6.0% (annualized) from the trailing quarter and increased $342.6 million or 5.1% from the same quarter of the prior year
• Deposit balances decreased $70.6 million or 3.4% (annualized) from the trailing quarter and increased $176.3 million or 2.2% from the same quarter of the prior year. One-way sell deposit balances totaled $72.9 million at quarter end, as compared to zero for both the trailing quarter and same quarter of the prior year
• Average non-interest bearing deposits grew by 2.1% (annualized) and were 31.0% of total deposits during the quarter
• Yield on average earning assets was 5.23%, a decrease of 2 basis points over the 5.25% in the trailing quarter; yield on average loans was 5.77%, an increase of 2 basis points over the 5.75% in the trailing quarter
• The average cost of total deposits was 1.29%, an decrease of 10 basis points as compared to 1.39% in the trailing quarter, and a decrease of 17 basis points from 1.46% in the same quarter of the prior year

CHICO, Calif.--(BUSINESS WIRE)-- TriCo Bancshares (NASDAQ: TCBK):

Executive Commentary:

“The strong performance trajectory which we close 2025 and start 2026 gives us good reason to be optimistic about our future. TriCo's foundation, built with exceptional employees and customers, consistently allows us to navigate a broad range of challenges and opportunities with confidence. Execution of our long-term strategies remain our primary focus, and we believe that alignment between the current economic outlook and our market positioning will be beneficial to the realization of our priorities,” said Rick Smith, Chairman and CEO.

Peter Wiese, EVP and CFO added, “The expansion of both net interest income and net interest margin, despite recent Federal Funds rate cuts, was certainly a highlight of the quarter and, given the slope of the yield curve, we continue to expect incremental improvement through 2026. While we also held expense growth to a minimum during 2025 (approximately 3%), year over year expense growth in 2026 is likely to accelerate (5%), but should still allow for positive operating leverage.”

Selected Financial Highlights

• For the quarter ended December 31, 2025, the Company’s return on average assets was 1.34%, while the return on average equity was 10.02%; for the trailing quarter ended September 30, 2025, the Company’s return on average assets was 1.36%, while the return on average equity was 10.47%
• Diluted earnings per share were $1.03 for the fourth quarter of 2025, compared to $1.04 for the trailing quarter and $0.88 during the fourth quarter of 2024
• The loan to deposit ratio was 86.05% as of December 31, 2025, as compared to 84.07% for the trailing quarter end. Management seeks to maintain this ratio within a range of 83.0% to 90.0% for purposes of revenue generation enhancement.
• The efficiency ratio was 54.68% for the quarter ended December 31, 2025, as compared to 56.18% for the trailing quarter
• The provision for credit losses was $3.0 million during the quarter ended December 31, 2025, as compared to $0.7 million during the trailing quarter
• The allowance for credit losses (ACL) to total loans was 1.77% as of December 31, 2025, compared to 1.78% as of the trailing quarter end, and 1.85% as of December 31, 2024. Non-performing assets to total assets were 0.72% on December 31, 2025, as compared to 0.72% as of September 30, 2025, and 0.48% at December 31, 2024. At December 31, 2025, the ACL represented 196% of non-performing loans

The financial results reported in this document are preliminary and unaudited. Final financial results and other disclosures will be reported on Form 10-K for the period ended December 31, 2025, and may differ materially from the results and disclosures in this document due to, among other things, the completion of final review procedures, the occurrence of subsequent events, or the discovery of additional information.

Operating Results and Performance Ratios

	Three months ended
	December 31, 2025				September 30, 2025
(dollars and shares in thousands, except per share data)									$ Change				% Change
Net interest income	$	92,227			$	89,555			$	2,672			3.0	%
Provision for credit losses		(3,000	)			(670	)			(2,330	)		347.8	%
Noninterest income		17,168				18,007				(839	)		(4.7	)%
Noninterest expense		(59,819	)			(60,424	)			605			(1.0	)%
Provision for income taxes		(12,942	)			(12,449	)			(493	)		4.0	%
Net income	$	33,634			$	34,019			$	(385	)		(1.1	)%
Diluted earnings per share	$	1.03			$	1.04			$	(0.01	)		(1.0	)%
Dividends per share	$	0.36			$	0.36			$	—			—	%
Average common shares		32,445				32,542				(97	)		(0.3	)%
Average diluted common shares		32,631				32,723				(92	)		(0.3	)%
Return on average total assets		1.34	%			1.36	%
Return on average equity		10.02	%			10.47	%
Efficiency ratio		54.68	%			56.18	%

	Three months ended December 31,
(dollars and shares in thousands, except per share data)		2025				2024			$ Change				% Change
Net interest income	$	92,227			$	84,090			$	8,137			9.7	%
Provision for credit losses		(3,000	)			(1,702	)			(1,298	)		76.3	%
Noninterest income		17,168				16,275				893			5.5	%
Noninterest expense		(59,819	)			(59,775	)			(44	)		0.1	%
Provision for income taxes		(12,942	)			(9,854	)			(3,088	)		31.3	%
Net income	$	33,634			$	29,034			$	4,600			15.8	%
Diluted earnings per share	$	1.03			$	0.88			$	0.15			17.0	%
Dividends per share	$	0.36			$	0.33			$	0.03			9.1	%
Average common shares		32,445				32,994				(549	)		(1.7	)%
Average diluted common shares		32,631				33,162				(531	)		(1.6	)%
Return on average total assets		1.34	%			1.19	%
Return on average equity		10.02	%			9.30	%
Efficiency ratio		54.68	%			59.56	%

	Twelve months ended December 31,
(dollars and shares in thousands, except per share data)		2025				2024			$ Change				% Change
Net interest income	$	350,843			$	331,434			$	19,409			5.9	%
Provision for credit losses		(12,063	)			(6,632	)			(5,431	)		81.9	%
Noninterest income		68,338				64,407				3,931			6.1	%
Noninterest expense		(240,959	)			(234,105	)			(6,854	)		2.9	%
Provision for income taxes		(44,601	)			(40,236	)			(4,365	)		10.8	%
Net income	$	121,558			$	114,868			$	6,690			5.8	%
Diluted earnings per share	$	3.70			$	3.46			$	0.24			6.9	%
Dividends per share	$	1.38			$	1.32			$	0.06			4.5	%
Average common shares		32,672				33,088				(416	)		(1.3	)%
Average diluted common shares		32,855				33,230				(375	)		(1.1	)%
Return on average total assets		1.23	%			1.18	%
Return on average equity		9.45	%			9.57	%
Efficiency ratio		57.48	%			59.14	%

Balance Sheet Data

Total loans outstanding were $7.1 billion as of December 31, 2025, an increase of $342.6 million or 5.1% over December 31, 2024, and an increase of $104.3 million or 6.0% annualized as compared to the trailing quarter ended September 30, 2025. Investments decreased by $13.7 million and $194.2 million for the three and twelve month periods ended December 31, 2025, respectively, and ended the quarter with a balance of $1.84 billion or 18.8% of total assets. Quarterly average earning assets to quarterly total average assets was 91.9% on December 31, 2025, compared to 91.8% at December 31, 2024. The loan-to-deposit ratio was 86.1% on December 31, 2025, as compared to 83.7% at December 31, 2024. The Company did not utilize brokered deposits during 2025 or 2024 and continues to rely on organic deposit customers to fund cash flow timing differences.

Total shareholders' equity increased by $23.7 million during the quarter ended December 31, 2025, as net income of $33.6 million and a $10.4 million decrease in accumulated other comprehensive losses were partially offset by $11.7 million in cash dividends on common stock and $8.9 million in share repurchase activity. As a result, the Company’s book value increased to $41.07 per share at December 31, 2025, compared to $40.12 at September 30, 2025. The Company’s tangible book value per share, a non-GAAP measure, calculated by subtracting goodwill and other intangible assets from total shareholders’ equity and dividing that sum by total shares outstanding, was $31.52 per share at December 31, 2025, as compared to $30.61 at September 30, 2025. Changes in the fair value of available-for-sale investment securities, net of deferred taxes, continue to create moderate levels of volatility in tangible book value per share.

Trailing Quarter Balance Sheet Change
Ending balances	December 31, 2025				September 30, 2025								Annualized % Change
(dollars in thousands)									$ Change
Total assets	$	9,822,063			$	9,878,836			$	(56,773	)		(2.3	)%
Total loans		7,111,087				7,006,824				104,263			6.0
Total investments		1,842,417				1,856,133				(13,716	)		(3.0	)
Total deposits		8,263,901				8,334,461				(70,560	)		(3.4	)
Total other borrowings		11,713				17,039				(5,326	)		(125.0	)

Loans outstanding increased by $104.3 million or 6.0% on an annualized basis during the quarter ended December 31, 2025. During the quarter, loan originations/draws totaled approximately $502.8 million while payoffs/repayments of loans totaled $367.3 million, which compares to originations/draws and payoffs/repayments during the trailing quarter ended of $424.6 million and $377.1 million, respectively. Origination volume remains in-line in with the trajectory of historical levels, as interest rates continue to contract from the highs experienced in early 2025, and the macro-economic outlook remains optimistic for borrowers following the passage of tax and spending legislation that is expected to promote continued economic expansion. The activity within loan payoffs/repayments remained consistent with the trailing quarter and spread amongst numerous borrowers, regions and loan types.

Investment security balances decreased $13.7 million or 3.0% on an annualized basis during the quarter as a result of net prepayments/maturities of $56.7 million, and sales of $20.6 million, partially offset by net increases in the market value of securities of $14.7 million and purchases of $49.3 million. Investment security purchases were comprised of fixed rate agency mortgage-backed securities and collateralized loan obligations. While management intends to primarily utilize cash flows from the investment security portfolio and organic deposit growth to support loan growth, excess liquidity will be utilized for purchases of investment securities to support net interest income growth and net interest margin expansion.

Deposit balances decreased by $70.6 million or 3.4% annualized during the period, which is consistent with the one-way sale of deposits totaling $72.9 million as of December 31, 2025. There were no deposit sales as of any comparable quarter end.

Average Trailing Quarter Balance Sheet Change
Quarterly average balances for the period ended	December 31, 2025				September 30, 2025								Annualized % Change
(dollars in thousands)									$ Change
Total assets	$	9,929,582			$	9,900,675			$	28,907			1.2	%
Total loans		7,023,749				6,971,860				51,889			3.0
Total investments		1,840,956				1,869,394				(28,438	)		(6.1	)
Total deposits		8,376,361				8,361,600				14,761			0.7
Total other borrowings		13,705				17,495				(3,790	)		(86.7	)

Year Over Year Balance Sheet Change
Ending balances	As of December 31,												% Change
(dollars in thousands)		2025				2024			$ Change
Total assets	$	9,822,063			$	9,673,728			$	148,335			1.5	%
Total loans		7,111,087				6,768,523				342,564			5.1
Total investments		1,842,417				2,036,610				(194,193	)		(9.5	)
Total deposits		8,263,901				8,087,576				176,325			2.2
Total other borrowings		11,713				89,610				(77,897	)		(86.9	)

Net Interest Income and Net Interest Margin

The Company's yield on loans for the fourth quarter was 5.77%, an increase of 2 basis point from 5.75% as of the trailing quarter end and a decrease of 1 basis point as compared to 5.78% for the quarter ended December 31, 2024. The tax equivalent yield on the Company's investment security portfolio was 3.35% for the quarter ended December 31, 2025, a decrease of 14 basis points from the trailing quarter end of 3.49% and a decrease of 3 basis points from the 3.38% earned during the three months ended December 31, 2024. As compared to the trailing quarter, costs on interest-bearing deposits decreased by 12 basis points, while costs on interest-bearing liabilities declined by 15 basis points. The cost of total interest-bearing deposits decreased by 28 basis points, while the costs of total interest-bearing liabilities decreased by 37 basis points, respectively, between the three-month periods ended December 31, 2025 and 2024, respectively.

The FOMC cut short-term interest rates during the current quarter by 50 basis points, following a 25 basis point reduction during the third quarter. The fully tax-equivalent net interest income and net interest margin was $92.5 million and 4.02%, respectively, for the quarter ended December 31, 2025, and was $89.8 million and 3.92%, respectively, for the trailing quarter ended September 30, 2025. More specifically, the net interest rate spread improved by 13 basis points to 3.33% for the quarter ended December 31, 2025, as compared to the trailing quarter, while the net interest margin improved by 10 basis points to 4.02% over the same period.

The Company continues to manage its cost of deposits through the use of various pricing and product mix strategies. As of December 31, 2025, September 30, 2025, and December 31, 2024, deposits priced utilizing these customized strategies totaled $898.9 million, $1.0 billion, and $1.1 billion and carried weighted average rates of 3.05%, 3.33% and 3.59%, respectively.

	Three months ended
	December 31, 2025				September 30, 2025
(dollars in thousands)									Change				% Change
Interest income	$	120,147			$	119,987			$	160			0.1	%
Interest expense		(27,920	)			(30,432	)			2,512			(8.3	)%
Fully tax-equivalent adjustment (FTE) (1)		260				262				(2	)		(0.8	)%
Net interest income (FTE)	$	92,487			$	89,817			$	2,670			3.0	%
Net interest margin (FTE)		4.02	%			3.92	%
Acquired loans discount accretion, net:
Amount (included in interest income)	$	915			$	996			$	(81	)		(8.1	)%
Net interest margin less effect of acquired loan discount accretion(1)		3.98	%			3.88	%			0.10	%
	Three months ended December 31,
(dollars in thousands)		2025				2024			Change				% Change
Interest income	$	120,147			$	116,842			$	3,305			2.8	%
Interest expense		(27,920	)			(32,752	)			4,832			(14.8	)%
Fully tax-equivalent adjustment (FTE) (1)		260				266				(6	)		(2.3	)%
Net interest income (FTE)	$	92,487			$	84,356			$	8,131			9.6	%
Net interest margin (FTE)		4.02	%			3.76	%
Acquired loans discount accretion, net:
Amount (included in interest income)	$	915			$	1,129			$	(214	)		(19.0	)%
Net interest margin less effect of acquired loan discount accretion(1)		3.98	%			3.71	%			0.27	%
	Twelve months ended December 31,
(dollars in thousands)		2025				2024			Change				% Change
Interest income	$	470,572			$	466,638			$	3,934			0.8	%
Interest expense		(119,729	)			(135,204	)			15,475			(11.4	)%
Fully tax-equivalent adjustment (FTE) (1)		1,050				1,085				(35	)		(3.2	)%
Net interest income (FTE)	$	351,893			$	332,519			$	19,374			5.8	%
Net interest margin (FTE)		3.89	%			3.71	%
Acquired loans discount accretion, net:
Amount (included in interest income)	$	5,153			$	4,329			$	824			19.0	%
Net interest margin less effect of acquired loan discount accretion(1)		3.83	%			3.66	%			0.17	%

(1)

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

Analysis Of Change in Net Interest Margin on Earning Assets

	Three months ended									Three months ended									Three months ended
	December 31, 2025									September 30, 2025									December 31, 2024
(dollars in thousands)	Average Balance			Income/ Expense			Yield/ Rate			Average Balance			Income/ Expense			Yield/ Rate			Average Balance			Income/ Expense			Yield/ Rate
Assets
Loans	$	7,023,749		$	102,231		5.77	%		$	6,971,860		$	101,004		5.75	%		$	6,720,732		$	97,692		5.78	%
Investments-taxable		1,710,394			14,404		3.34	%			1,737,273			15,321		3.50	%			1,932,839			16,413		3.38	%
Investments-nontaxable (1)		130,562			1,126		3.42	%			132,121			1,134		3.41	%			133,598			1,152		3.43	%
Total investments		1,840,956			15,530		3.35	%			1,869,394			16,455		3.49	%			2,066,437			17,565		3.38	%
Cash at Fed Reserve and other banks		262,724			2,646		4.00	%			249,646			2,790		4.43	%			144,908			1,851		5.08	%
Total earning assets		9,127,429			120,407		5.23	%			9,090,900			120,249		5.25	%			8,932,077			117,108		5.22	%
Other assets, net		802,153									809,775									793,566
Total assets	$	9,929,582								$	9,900,675								$	9,725,643
Liabilities and shareholders’ equity
Interest-bearing demand deposits	$	1,831,148		$	6,266		1.36	%		$	1,850,733		$	6,649		1.43	%		$	1,723,059		$	5,704		1.32	%
Savings deposits		2,848,212			11,651		1.62	%			2,855,750			12,965		1.80	%			2,699,084			12,666		1.87	%
Time deposits		1,097,570			9,284		3.36	%			1,107,646			9,587		3.43	%			1,111,024			11,518		4.12	%
Total interest-bearing deposits		5,776,930			27,201		1.87	%			5,814,129			29,201		1.99	%			5,533,167			29,888		2.15	%
Other borrowings		13,705			1		0.03	%			17,495			3		0.07	%			95,202			1,066		4.45	%
Junior subordinated debt		41,238			718		6.91	%			71,477			1,228		6.82	%			101,173			1,798		7.07	%
Total interest-bearing liabilities		5,831,873			27,920		1.90	%			5,903,101			30,432		2.05	%			5,729,542			32,752		2.27	%
Noninterest-bearing deposits		2,599,431									2,547,471									2,585,496
Other liabilities		165,974									160,568									169,083
Shareholders’ equity		1,332,304									1,289,535									1,241,522
Total liabilities and shareholders’ equity	$	9,929,582								$	9,900,675								$	9,725,643
Net interest rate spread (1) (2)							3.33	%								3.20	%								2.95	%
Net interest income and margin (1) (3)				$	92,487		4.02	%					$	89,817		3.92	%					$	84,356		3.76	%

(1)	Fully taxable equivalent (FTE). All yields and rates are calculated using specific day counts for the period and year as applicable.
(2)	Net interest spread is the average yield earned on interest-earning assets minus the average rate paid on interest-bearing liabilities.
(3)	Net interest margin is computed by calculating the difference between interest income and interest expense, divided by the average balance of interest-earning assets.

Net interest income (FTE) during the three months ended December 31, 2025, increased $2.7 million or 3.0% to $92.5 million compared to $89.8 million during the three months ended September 30, 2025. Net interest margin totaled 4.02% for the three months ended December 31, 2025, an increase of 10 basis points from the trailing quarter. The increase in net interest income is primarily attributed to a $2 million reduction in interest expense on deposits, led by $1.3 million in benefit from savings deposit accounts. The net interest margin was further enhanced by reductions in interest expense on junior subordinated debt of $0.5 million as compared to the trailing quarter, following the early extinguishment of subordinated debt with a recorded book value of $59.9 million during the third quarter. In addition, the average balance of noninterest-bearing deposits increased by $52.0 million from the three-month average for the period ended September 30, 2025.

As compared to the same quarter in the prior year, average loan yields decreased 1 basis points from 5.78% during the three months ended December 31, 2024, to 5.77% during the three months ended December 31, 2025. The accretion of discounts from acquired loans added 5 basis points to loan yields during both quarters ended December 31, 2025 and December 31, 2024, respectively. The cost of interest-bearing deposits decreased by 28 basis points between the quarter ended December 31, 2025, and the same quarter of the prior year. In addition, the average balance of noninterest-bearing deposits increased by $13.9 million from the three-month average for the period ended December 31, 2024.

For the quarter ended December 31, 2025, the ratio of average total noninterest-bearing deposits to total average deposits was 31.0%, as compared to 30.5% and 31.8% for the quarters ended September 30, 2025 and December 31, 2024, respectively.

	Twelve months ended December 31, 2025									Twelve months ended December 31, 2024
(dollars in thousands)	Average Balance			Income/ Expense			Yield/ Rate			Average Balance			Income/ Expense			Yield/ Rate
Assets
Loans	$	6,913,337		$	397,308		5.75	%		$	6,747,072		$	390,491		5.79	%
Investments-taxable		1,787,112			60,398		3.38	%			2,008,823			68,434		3.41	%
Investments-nontaxable (1)		132,154			4,551		3.44	%			136,530			4,700		3.44	%
Total investments		1,919,266			64,949		3.38	%			2,145,353			73,134		3.41	%
Cash at Fed Reserve and other banks		216,083			9,365		4.33	%			80,439			4,098		5.09	%
Total earning assets		9,048,686			471,622		5.21	%			8,972,864			467,723		5.21	%
Other assets, net		806,100									784,462
Total assets	$	9,854,786								$	9,757,326
Liabilities and shareholders’ equity
Interest-bearing demand deposits	$	1,829,324		$	25,212		1.38	%		$	1,734,900		$	22,998		1.33	%
Savings deposits		2,808,876			49,060		1.75	%			2,677,726			49,028		1.83	%
Time deposits		1,106,959			39,033		3.53	%			999,143			41,100		4.11	%
Total interest-bearing deposits		5,745,159			113,305		1.97	%			5,411,769			113,126		2.09	%
Other borrowings		35,585			1,065		2.99	%			294,318			14,706		5.00	%
Junior subordinated debt		78,604			5,359		6.82	%			101,139			7,372		7.29	%
Total interest-bearing liabilities		5,859,348			119,729		2.04	%			5,807,226			135,204		2.33	%
Noninterest-bearing deposits		2,544,718									2,584,904
Other liabilities		163,761									165,056
Shareholders’ equity		1,286,959									1,200,140
Total liabilities and shareholders’ equity	$	9,854,786								$	9,757,326
Net interest rate spread (1) (2)							3.17	%								2.88	%
Net interest income and margin (1) (3)				$	351,893		3.89	%					$	332,519		3.71	%

(1)	Fully taxable equivalent (FTE). All yields and rates are calculated using specific day counts for the period and year as applicable.
(2)	Net interest spread is the average yield earned on interest-earning assets minus the average rate paid on interest-bearing liabilities.
(3)	Net interest margin is computed by calculating the difference between interest income and interest expense, divided by the average balance of interest-earning assets.

Interest Rates and Earning Asset Composition

As of December 31, 2025, the Company's loan portfolio consisted of approximately $7.1 billion in outstanding principal with a weighted average coupon rate of 5.56%. During the three-month periods ending December 31, 2025, September 30, 2025, and December 31, 2024, the weighted average coupon on loan production in the quarter was 6.31%, 6.71% and 6.94%, respectively. Included in the December 31, 2025 total loans balance are adjustable rate loans totaling $4.7 billion, of which $1.0 billion are considered floating based on the Wall Street Prime index. In addition, the Company holds certain investment securities with fair values totaling $287.7 million which are subject to repricing on not less than a quarterly basis.

Asset Quality and Credit Loss Provisioning

During the three months ended December 31, 2025, the Company recorded a provision for credit losses of $3.0 million, as compared to $0.7 million during the trailing quarter, and $1.7 million during the fourth quarter of 2024.

	Three months ended												Twelve months ended
(dollars in thousands)	December 31, 2025				September 30, 2025				December 31, 2024				December 31, 2025				December 31, 2024
Addition to allowance for credit losses	$	2,400			$	730			$	1,812			$	10,318			$	6,482
(Reduction) addition to reserve for unfunded loan commitments		600				(60	)			(110	)			1,745				150
Total provision for credit losses	$	3,000			$	670			$	1,702			$	12,063			$	6,632

	Three months ended												Twelve months ended
(dollars in thousands)	December 31, 2025				September 30, 2025				December 31, 2024				December 31, 2025				December 31, 2024
Balance, beginning of period	$	124,571			$	124,455			$	123,760			$	125,366			$	121,522
Provision for credit losses		2,400				730				1,812				10,318				6,482
Loans charged-off		(1,345	)			(737	)			(722	)			(11,051	)			(4,051	)
Recoveries of previously charged-off loans		136				123				516				1,129				1,413
Balance, end of period	$	125,762			$	124,571			$	125,366			$	125,762			$	125,366

The allowance for credit losses (ACL) was $125.8 million or 1.77% of total loans as of December 31, 2025. The provision for credit losses on loans of $2.4 million recorded during the current quarter resulted, primarily, from an increase of approximately $1.6 million in reserves on collectively evaluated loans and $1.0 million to replenish specific reserves following net charge-offs on totaling $1.2 million.

The charge-offs incurred on collectively evaluated loans during the quarter ended December 31, 2025 were primarily concentrated within non-performing agriculture real-estate loans which had been identified by management as non-performing during previous quarters. Observable market valuations associated with agricultural real estate remain consistent as compared to the trailing quarter, while the stable water supply and improving commodity prices for the crops associated with collateral for these loans are reflected by improving cash flows. Management believes the provisioning for these individually analyzed relationships is sufficient relative to expected future losses, if any.

The $1.6 million recorded for general reserves is primarily attributed to net loan growth for the quarter of approximately $104.3 million. Additionally, Management notes that economic indicators through the end of the current quarter, as well as actual and forecasted trends including, but not limited to, unemployment, gross domestic product, and corporate borrowing rates continued to evidence stability and were supportive of general economic expansion, and consistent or slightly improved as compared with the trailing period ended September 30, 2025. While this is aligned with the Company's direct experiences with borrowers, Management's proactive portfolio management policies and ongoing dialogue with borrowers suggests caution continues to be warranted. Actions by the Federal Reserve to further cut rates during 2026 or stimulative policies by the Federal government may help further improve this outlook overall, but the uncertainty associated with the extent and timing of these potential reductions has inhibited a material change to monetary policy assumptions. Furthermore, political policy risks both domestic and international remain unresolved, which could quickly lead to further negative effects on domestic economic outcomes. The uncertainties related to the nature, duration and potential economic impact from tariffs, and their legal standing, continue to present challenges in correlating potential improvement of credit risks within the Company's loan portfolio. Therefore, management continues to believe that certain credit weaknesses are present in the overall economy and that it is appropriate to maintain a reserve level that incorporates such risk factors.

(dollars in thousands)	As of December 31, 2025			% of Loans Outstanding			As of September 30, 2025			% of Loans Outstanding			As of December 31, 2024			% of Loans Outstanding
Risk Rating:
Pass	$	6,874,545		96.7	%		$	6,785,679		96.8	%		$	6,539,560		96.7	%
Special Mention		109,768		1.5	%			89,352		1.3	%			110,935		1.6	%
Substandard		126,774		1.8	%			131,793		1.9	%			118,028		1.7	%
Total	$	7,111,087		100.0	%		$	7,006,824		100.0	%		$	6,768,523		100.0	%
Classified loans to total loans		1.78	%					1.88	%					1.74	%
Loans past due 30+ days to total loans		0.53	%					0.65	%					0.48	%
ACL to non-performing loans		195.84	%					189.76	%					284.30	%

The ratio of classified loans to total loans of 1.78% as of December 31, 2025, was down 10 basis points from September 30, 2025, but increased 4 basis points from the comparative quarter ended 2024. The change in classified loans outstanding as compared to the trailing quarter represented a decrease of approximately $5.0 million.

Loans past due 30 days or more decreased by $7.8 million during the quarter ended December 31, 2025, to $37.9 million, as compared to $45.7 million at September 30, 2025. The majority of loans identified as past due are well-secured by collateral, and approximately $14.5 million are less than 90 days delinquent.

Non-performing loans decreased by $1.4 million during the quarter ended December 31, 2025 to $64.2 million as compared to $65.6 million at September 30, 2025. The credit and collateral profiles of non-performing loans remain generally consistent with the trailing quarter. As noted previously, management continues to proactively work with these borrowers to identify actionable and appropriate resolution strategies which are customary for the industries. We anticipate that these proactive strategies within agriculture commercial real estate loans will further benefit from the continued improvement in agricultural commodity prices, stable water supply, and growing crop demand. Of the $64.2 million loans designated as non-performing as of December 31, 2025, approximately $36.7 million are current or less than 30 days past due with respect to payments required under their existing loan agreements.

Management continues to proactively assess the repayment capacity of borrowers that will be subject to rate resets in the near term. To date this analysis as well as management's observations of loans that have experienced a rate reset, have resulted in an insignificant need to provide concessions to borrowers.

As of December 31, 2025, other real estate owned consisted of 12 properties with a carrying value of approximately $6.2 million, as compared to 10 properties with a carrying value of $5.4 million at September 30, 2025. Non-performing assets of $70.5 million at December 31, 2025, represented 0.72% of total assets, a change from $71.1 million or 0.72% and $46.9 million or 0.48% as of September 30, 2025 and December 31, 2024, respectively.

Allocation of Credit Loss Reserves by Loan Type

	As of December 31, 2025						As of September 30, 2025						As of December 31, 2024
(dollars in thousands)	Amount			% of Loans Outstanding			Amount			% of Loans Outstanding			Amount			% of Loans Outstanding
Commercial real estate:
CRE - Non-Owner Occupied	$	40,300		1.61	%		$	41,179		1.68	%		$	37,229		1.60	%
CRE - Owner Occupied		12,712		1.25	%			11,930		1.15	%			15,747		1.64	%
Multifamily		17,327		1.60	%			15,706		1.50	%			15,913		1.55	%
Farmland		5,193		2.07	%			6,202		2.40	%			3,960		1.49	%
Total commercial real estate loans		75,532		1.56	%			75,017		1.57	%			72,849		1.59	%
Consumer:
SFR 1-4 1st Liens		11,045		1.31	%			11,022		1.30	%			14,227		1.65	%
SFR HELOCs and Junior Liens		13,264		3.07	%			12,362		3.07	%			10,411		2.86	%
Other		1,974		4.85	%			2,364		5.48	%			2,825		4.87	%
Total consumer loans		26,283		2.00	%			25,748		1.99	%			27,463		2.14	%
Commercial and Industrial		11,430		2.46	%			9,089		2.01	%			14,397		3.05	%
Construction		8,231		2.73	%			10,792		3.61	%			7,224		2.58	%
Agricultural Production		4,265		2.47	%			3,901		2.40	%			3,403		2.24	%
Leases		21		0.44	%			24		0.44	%			30		0.44	%
Allowance for credit losses		125,762		1.77	%			124,571		1.78	%			125,366		1.85	%
Reserve for unfunded loan commitments		7,745						7,145						6,000
Total allowance for credit losses	$	133,507		1.88	%		$	131,716		1.88	%		$	131,366

In addition to the allowance for credit losses above, the Company has acquired various performing loans whose fair value as of the acquisition date was determined to be less than the principal balance owed on those loans. This difference represents the collective discount of credit, interest rate and liquidity measurements, which are expected to be amortized over the life of the loans. As of December 31, 2025, the unamortized discount associated with acquired loans totaled $14.9 million, which, when combined with the total allowance for credit losses above, represents 2.09% of total loans.

Non-interest Income

	Three months ended
(dollars in thousands)	December 31, 2025				September 30, 2025				Change				% Change
ATM and interchange fees	$	6,352			$	6,493			$	(141	)		(2.2	)%
Service charges on deposit accounts		5,416				5,448				(32	)		(0.6	)%
Other service fees		1,432				1,485				(53	)		(3.6	)%
Mortgage banking service fees		429				430				(1	)		(0.2	)%
Change in value of mortgage servicing rights		(263	)			(105	)			(158	)		(150.5	)%
Total service charges and fees		13,366				13,751				(385	)		(2.8	)%
Increase in cash value of life insurance		862				871				(9	)		(1.0	)%
Asset management and commission income		1,970				1,932				38			2.0	%
Gain on sale of loans		432				327				105			32.1	%
Lease brokerage income		26				82				(56	)		(68.3	)%
Sale of customer checks		326				311				15			4.8	%
(Loss) gain on sale of investment securities		19				(2,124	)			2,143			(100.9	)%
(Loss) gain on marketable equity securities		11				26				(15	)		(57.7	)%
Other income		156				2,831				(2,675	)		(94.5	)%
Total other non-interest income		3,802				4,256				(454	)		(10.7	)%
Total non-interest income	$	17,168			$	18,007			$	(839	)		(4.7	)%

Total non-interest income decreased $0.8 million or 4.7% to $17.2 million during the three months ended December 31, 2025, compared to $18.0 million during the quarter ended September 30, 2025. Non-interest income activity during the quarter was generally flat as compared with the trailing quarter, after excluding the prior period non-recurring gain of approximately $2.5 million in other income related to the early extinguishment of $59.9 million in subordinated debt and losses of approximately $2.1 million from the sale of $28.5 million in investment securities.

	Three months ended December 31,
(dollars in thousands)		2025				2024			Change				% Change
ATM and interchange fees	$	6,352			$	6,306			$	46			0.7	%
Service charges on deposit accounts		5,416				4,962				454			9.1	%
Other service fees		1,432				1,425				7			0.5	%
Mortgage banking service fees		429				434				(5	)		(1.2	)%
Change in value of mortgage servicing rights		(263	)			(12	)			(251	)		(2,091.7	)%
Total service charges and fees		13,366				13,115				251			1.9	%
Increase in cash value of life insurance		862				837				25			3.0	%
Asset management and commission income		1,970				1,584				386			24.4	%
Gain on sale of loans		432				334				98			29.3	%
Lease brokerage income		26				78				(52	)		(66.7	)%
Sale of customer checks		326				300				26			8.7	%
(Loss) gain on sale or exchange of investment securities		19				—				19			100.0	%
(Loss) gain on marketable equity securities		11				(81	)			92			(113.6	)%
Other income		156				108				48			44.4	%
Total other non-interest income		3,802				3,160				642			20.3	%
Total non-interest income	$	17,168			$	16,275			$	893			5.5	%

Non-interest income increased $0.9 million or 5.5% to $17.2 million during the three months ended December 31, 2025, compared to $16.3 million during the comparative quarter ended December 31, 2024. Growth in deposit related transactional activities during the quarter contributed to the elevated service fees, which increased by a combined $0.5 million as compared to the equivalent period in 2024. Further, elevated activity and volume of assets under management drove an increase of $0.4 million or 24.4% in asset management and commission income for the period ended December 31, 2025, as compared to the same period in 2024.

	Twelve months ended December 31,
(dollars in thousands)		2025				2024			Change				% Change
ATM and interchange fees	$	25,541			$	25,319			$	222			0.9	%
Service charges on deposit accounts		20,967				19,451				1,516			7.8	%
Other service fees		5,761				5,301				460			8.7	%
Mortgage banking service fees		1,736				1,739				(3	)		(0.2	)%
Change in value of mortgage servicing rights		(560	)			(480	)			(80	)		(16.7	)%
Total service charges and fees		53,445				51,330				2,115			4.1	%
Increase in cash value of life insurance		3,395				3,257				138			4.2	%
Asset management and commission income		7,025				5,573				1,452			26.1	%
Gain on sale of loans		1,606				1,532				74			4.8	%
Lease brokerage income		224				455				(231	)		(50.8	)%
Sale of customer checks		1,300				1,216				84			6.9	%
(Loss) gain on sale or exchange of investment securities		(3,247	)			(43	)			(3,204	)		(7,451.2	)%
(Loss) gain on marketable equity securities		84				126				(42	)		(33.3	)%
Other income		4,506				961				3,545			368.9	%
Total other non-interest income		14,893				13,077				1,816			13.9	%
Total non-interest income	$	68,338			$	64,407			$	3,931			6.1	%

Non-interest income increased $3.9 million or 6.1% to $68.3 million during the twelve months ended December 31, 2025, compared to $64.4 million during the comparative twelve months ended December 31, 2024. As noted above increased balances and transaction volume in both deposits and assets under management, service charges and customer fees are elevated in the 2025 period, along with asset management and commission income. During 2025, other income increased by $3.5 million due to $2.5 million gain on early extinguishment of subordinated debt mentioned above, in addition to $1.2 million gain on life insurance benefits during the first quarter. As a partial offset, the Company incurred losses on the sale of investment securities totaling approximately $3.2 million, generating proceeds of $58.5 million.

Non-interest Expense

	Three months ended
(dollars in thousands)	December 31, 2025				September 30, 2025				Change				% Change
Base salaries, net of deferred loan origination costs	$	25,048			$	25,340			$	(292	)		(1.2	)%
Incentive compensation		6,002				5,351				651			12.2	%
Benefits and other compensation costs		5,851				7,038				(1,187	)		(16.9	)%
Total salaries and benefits expense		36,901				37,729				(828	)		(2.2	)%
Occupancy		4,515				4,388				127			2.9	%
Data processing and software		5,363				4,838				525			10.9	%
Equipment		1,417				1,269				148			11.7	%
Intangible amortization		482				482				—			—	%
Advertising		774				647				127			19.6	%
ATM and POS network charges		1,981				1,911				70			3.7	%
Professional fees		1,375				1,842				(467	)		(25.4	)%
Telecommunications		476				503				(27	)		(5.4	)%
Regulatory assessments and insurance		1,319				1,282				37			2.9	%
Postage		382				353				29			8.2	%
Operational loss		413				544				(131	)		(24.1	)%
Courier service		575				577				(2	)		(0.3	)%
(Gain) loss on sale or acquisition of foreclosed assets		257				—				257			100.0	%
(Gain) loss on disposal of fixed assets		6				21				(15	)		(71.4	)%
Other miscellaneous expense		3,583				4,038				(455	)		(11.3	)%
Total other non-interest expense		22,918				22,695				223			1.0	%
Total non-interest expense	$	59,819			$	60,424			$	(605	)		(1.0	)%
Average full-time equivalent staff		1,135				1,154				(19	)		(1.6	)%

Total non-interest expense for the quarter ended December 31, 2025, decreased $0.6 million or 1.0% to $59.8 million as compared to $60.4 million during the trailing quarter ended September 30, 2025. Total salaries and benefits expense, the largest non-interest expense component, decreased by $0.8 million or 2.2%, in line with the overall reduction in FTEs during the period and the curtailment of benefits only allocated to those employed as of the last day of the fiscal year. Changes in other non-interest expense line items were mixed, but essentially flat on a net basis for the quarter ended December 31, 2025 with an increase of $0.2 million.

	Three months ended December 31,
(dollars in thousands)		2025				2024			Change				% Change
Base salaries, net of deferred loan origination costs	$	25,048			$	24,583			$	465			1.9	%
Incentive compensation		6,002				4,568				1,434			31.4	%
Benefits and other compensation costs		5,851				6,175				(324	)		(5.2	)%
Total salaries and benefits expense		36,901				35,326				1,575			4.5	%
Occupancy		4,515				4,206				309			7.3	%
Data processing and software		5,363				5,493				(130	)		(2.4	)%
Equipment		1,417				1,364				53			3.9	%
Intangible amortization		482				1,030				(548	)		(53.2	)%
Advertising		774				1,118				(344	)		(30.8	)%
ATM and POS network charges		1,981				1,791				190			10.6	%
Professional fees		1,375				1,747				(372	)		(21.3	)%
Telecommunications		476				477				(1	)		(0.2	)%
Regulatory assessments and insurance		1,319				1,300				19			1.5	%
Postage		382				346				36			10.4	%
Operational loss		413				482				(69	)		(14.3	)%
Courier service		575				538				37			6.9	%
(Gain) loss on sale or acquisition of foreclosed assets		257				(61	)			318			(521.3	)%
(Gain) loss on disposal of fixed assets		6				7				(1	)		(14.3	)%
Other miscellaneous expense		3,583				4,611				(1,028	)		(22.3	)%
Total other non-interest expense		22,918				24,449				(1,531	)		(6.3	)%
Total non-interest expense	$	59,819			$	59,775			$	44			0.1	%
Average full-time equivalent staff		1,135				1,172				(37	)		(3.2	)%

Total non-interest expense increased $0.04 million or 0.1% to $59.8 million during the three months ended December 31, 2025, as compared to $59.8 million for the quarter ended December 31, 2024. Total salaries and benefits expense increased by $1.6 million or 4.5%, led by incentive compensation cost increases of $1.4 million, reflecting elevated levels of loan production and overall Bank performance during the fourth quarter of 2025, as compared to 2024. Other non-interest expense line items generally evidenced broad based incremental improvements for the quarter ended December 31, 2025, resulting in a net decrease of $1.5 million, led by other miscellaneous expense declines of $1.0 million, largely from fewer expenses related to real estate owned and business travel.

	Twelve months ended December 31,
(dollars in thousands)		2025				2024			Change				% Change
Base salaries, net of deferred loan origination costs	$	101,546			$	96,862			$	4,684			4.8	%
Incentive compensation		20,614				16,897				3,717			22.0	%
Benefits and other compensation costs		27,611				26,822				789			2.9	%
Total salaries and benefits expense		149,771				140,581				9,190			6.5	%
Occupancy		17,180				16,411				769			4.7	%
Data processing and software		20,218				20,952				(734	)		(3.5	)%
Equipment		5,159				5,424				(265	)		(4.9	)%
Intangible amortization		1,961				4,120				(2,159	)		(52.4	)%
Advertising		3,433				3,851				(418	)		(10.9	)%
ATM and POS network charges		7,586				7,151				435			6.1	%
Professional fees		6,402				6,794				(392	)		(5.8	)%
Telecommunications		1,980				2,053				(73	)		(3.6	)%
Regulatory assessments and insurance		5,181				4,951				230			4.6	%
Postage		1,440				1,329				111			8.4	%
Operational loss		1,651				1,681				(30	)		(1.8	)%
Courier service		2,184				2,119				65			3.1	%
(Gain) loss on sale or acquisition of foreclosed assets		254				(73	)			327			(447.9	)%
(Gain) loss on disposal of fixed assets		117				19				98			515.8	%
Other miscellaneous expense		16,442				16,742				(300	)		(1.8	)%
Total other non-interest expense		91,188				93,524				(2,336	)		(2.5	)%
Total non-interest expense	$	240,959			$	234,105			$	6,854			2.9	%
Average full-time equivalent staff		1,164				1,170				(6	)		(0.5	)%

Non-interest expense increased $6.9 million or 2.9% to $241.0 million during the twelve months ended December 31, 2025, as compared to $234.1 million for the twelve months ended December 31, 2024. The largest component was salaries and benefits expense which increased $9.2 million or 6.5% to $149.8 million as compared to 2024, attributed to a combination of routine merit increases, increased incentive compensation from elevated levels of both loan and deposit production, and targeted strategic hiring. Other non-interest expense line items evidenced broad based but incremental decreases, driving a net decrease of $2.3 million year over year. For the year ended 2026, Management anticipates that total non-interest expenses will increase by approximately 5% as compared to the 2.9% experienced in the 2025 year.

Provision for Income Taxes

The Company’s effective tax rate was 27.8% for the quarter ended December 31, 2025, as compared to 26.8% for the quarter ended September 30, 2025, and 25.9% for the year ended December 31, 2024. Differences between the Company's effective tax rate and applicable federal and state blended statutory rate of approximately 29.6% are due to the proportion of non-taxable revenues, non-deductible expenses, and benefits from tax credits as compared to the levels of pre-tax earnings.

Share Repurchase Program

The Company's Board of Directors approved the authorization to repurchase up to 2,000,000 shares of the Company’s common stock, no par value per share which approximates 6.2% of the currently outstanding common shares. The Company’s 2025 Share Repurchase Program replaces and supersedes the current 2021 Share Repurchase Program which has been terminated. Under the new program, management is authorized to repurchase shares at its discretion through Rule 10b5-1 plans, open market purchases, privately negotiated transactions, block purchases or otherwise in a manner that is intended to comply with applicable federal securities laws, including Rule 10b-18 of the Securities Exchange Act of 1934. The Board may suspend or discontinue the program at any time. Therefore, the total value of the shares to be purchased under the program is subject to change. Based on the closing price of the Company's stock on January 20, 2026, of $48.55, the repurchase of all shares authorized under the 2025 Share Repurchase Program would represent approximately $97.1 million in value.

About TriCo Bancshares

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

Forward-Looking Statements

The statements contained herein that are not historical facts are forward-looking statements based on management’s current expectations and beliefs concerning future developments and their potential effects on us. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond our control. We caution readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. These risks and uncertainties include, but are not limited to, the following: macroeconomic, geopolitical, and other challenges and uncertainties, including those related to actual or potential policies and actions from the U.S. administration, such as tariffs and reciprocal actions by other countries or regions and their ultimate impact on us, our customers, financial markets, and the overall U.S. and global economies; the uncertainty of rapidly evolving and changing U.S. trade policies and practices; inflation/deflation, interest rate, market and monetary fluctuations/volatility; increases in unemployment rates; slowing economic growth or recession in the U.S. and other countries or regions; the impact of any future federal government shutdown and uncertainty regarding the federal government’s debt limit; the impact of changes in financial services industry policies, laws and regulations; regulatory restrictions or adverse regulatory findings affecting our ability to successfully market and price our products to consumers; systemic or non-systemic bank failures or crises and any related impact on depositor behavior or investor sentiment; the impacts of international hostilities, wars, terrorism or geopolitical events; risks related to the sufficiency of liquidity, including our ability to attract and maintain deposits; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learning; extreme weather, natural disasters and other catastrophic events and their effects on our customers and the economic and business environments in which we operate; current and future economic and market conditions of the local economies in which we conduct operations; declines in housing and commercial real estate prices and changes in the financial performance and/or condition of our borrowers; the market value of our investment securities and possible other-than-temporary impairment of securities held by us due to changes in credit quality or rates; the availability of, and cost of, sources of funding and the demand for our products; the possibility that our recorded goodwill could become impaired, which may have an adverse impact on our earnings and capital; the costs or effects of mergers, acquisitions or dispositions we may make, as well as whether we are able to obtain any required governmental approvals in connection with any such activities, or identify and complete favorable transactions in the future, and/or realize the anticipated financial and business benefits; the volatility of the stock market and its impact on our stock price and our ability to conduct acquisitions; the regulatory and financial impacts associated with exceeding $10 billion in total assets; the ability to execute our business plan in new markets; our future operating or financial performance, including our outlook for future growth and our ability to control expenses; changes in the level and direction of our nonperforming assets and charge-offs and the appropriateness of the allowance for credit losses; the effectiveness of us managing the mix of earning assets and in improving, resolving or liquidating lower-quality assets; changes in accounting standards and practices; changes in consumer spending, borrowing and savings habits; the effects of changes in the level or cost of checking or savings account deposits on our funding costs and net interest margin; the impact of alternative currencies such as stablecoin and other cryptocurrencies on our ability to attract deposits; increasing noninterest expense and its impact on our financial performance; competition and innovation with respect to financial products and services by banks, financial institutions and non-traditional competitors including retail businesses and technology companies; potential changes to loss allocations between financial institutions and customers, including for losses incurred from the use of our products and services, including electronic payments and payment of checks, that were authorized by the customer but induced by fraud; the challenges of attracting, integrating and retaining key employees; the impact of the 2023 cyber security ransomware incident, including the pending litigation, on our operations and reputation; the vulnerability of our operational or security systems or infrastructure, the systems of third- and fourth-party vendors or other service providers with whom we contract, and our customers to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and data/security breaches and the cost to defend against and respond to such incidents; increased data security risks due to work from home arrangements and email vulnerability; failure to safeguard personal information, and any resulting litigation; the effect of a fall in stock market prices on our brokerage and wealth management businesses; the effectiveness of our risk management framework and quantitative models; the emergence or continuation of widespread health emergencies or pandemics; potential judgments, orders, settlements, penalties, fines and reputational damage resulting from pending or future litigation and regulatory investigations, proceedings and enforcement actions; and our ability to manage the risks involved in the foregoing. There can be no assurance that future developments affecting us will be the same as those anticipated by management. Additional factors that could cause results to differ materially from those described above can be found in our filings with the U.S. Securities and Exchange Commission, including without limitation the “Risk Factors” Section of TriCo’s Annual Report on Form 10-K for the year ended December 31, 2024, Such filings are also available in the “Investor Relations” section of our website, https://www.tcbk.com/investor-relations. Annualized, pro forma, projections and estimates are not forecasts and may not reflect actual results. We undertake no obligation (and expressly disclaim any such obligation) to update or alter our forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

TriCo Bancshares—Condensed Consolidated Financial Data (unaudited)

(dollars in thousands, except per share data)	Three months ended
	December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
Revenue and Expense Data
Interest income	$	120,147			$	119,987			$	116,361			$	114,077			$	116,842
Interest expense		27,920				30,432				29,842				31,535				32,752
Net interest income		92,227				89,555				86,519				82,542				84,090
Provision for credit losses		3,000				670				4,665				3,728				1,702
Noninterest income:
Service charges and fees		13,366				13,751				13,650				12,678				13,115
(Loss) gain on sale or exchange of investment securities		19				(2,124	)			4				(1,146	)			—
Other income		3,783				6,380				3,436				4,541				3,160
Total noninterest income		17,168				18,007				17,090				16,073				16,275
Noninterest expense:
Salaries and benefits		36,901				37,729				38,286				36,855				35,326
Occupancy and equipment		5,932				5,657				5,389				5,361				5,570
Data processing and network		7,344				6,749				6,802				6,909				7,284
Other noninterest expense		9,642				10,289				10,654				10,460				11,595
Total noninterest expense		59,819				60,424				61,131				59,585				59,775
Total income before taxes		46,576				46,468				37,813				35,302				38,888
Provision for income taxes		12,942				12,449				10,271				8,939				9,854
Net income	$	33,634			$	34,019			$	27,542			$	26,363			$	29,034
Share Data
Basic earnings per share	$	1.04			$	1.04			$	0.84			$	0.80			$	0.88
Diluted earnings per share	$	1.03			$	1.04			$	0.84			$	0.80			$	0.88
Dividends per share	$	0.36			$	0.36			$	0.33			$	0.33			$	0.33
Book value per common share	$	41.07			$	40.12			$	38.92			$	38.17			$	37.03
Tangible book value per common share (1)	$	31.52			$	30.61			$	29.40			$	28.73			$	27.60
Shares outstanding		32,334,974				32,506,880				32,550,264				32,892,488				32,970,425
Weighted average common shares		32,444,684				32,542,401				32,757,378				32,952,541				32,993,975
Weighted average diluted common shares		32,630,819				32,723,358				32,935,750				33,129,161				33,161,715
Credit Quality
Allowance for credit losses to gross loans		1.77	%			1.78	%			1.79	%			1.88	%			1.85	%
Loans past due 30 days or more	$	37,931			$	45,712			$	42,965			$	44,753			$	32,711
Total nonperforming loans	$	64,218			$	65,647			$	64,783			$	54,854			$	44,096
Total nonperforming assets	$	70,464			$	71,077			$	67,466			$	57,539			$	46,882
Loans charged-off	$	1,345			$	737			$	8,595			$	374			$	722
Loans recovered	$	136			$	123			$	102			$	768			$	516
Selected Financial Ratios
Return on average total assets		1.34	%			1.36	%			1.13	%			1.09	%			1.19	%
Return on average equity		10.02	%			10.47	%			8.68	%			8.54	%			9.30	%
Average yield on loans		5.77	%			5.75	%			5.76	%			5.71	%			5.78	%
Average yield on interest-earning assets		5.23	%			5.25	%			5.21	%			5.15	%			5.22	%
Average rate on interest-bearing deposits		1.87	%			1.99	%			1.97	%			2.06	%			2.15	%
Average cost of total deposits		1.29	%			1.39	%			1.37	%			1.43	%			1.46	%
Average cost of total deposits and other borrowings		1.29	%			1.38	%			1.37	%			1.46	%			1.50	%
Average rate on borrowings & subordinated debt		5.19	%			5.49	%			5.84	%			5.68	%			5.80	%
Average rate on interest-bearing liabilities		1.90	%			2.05	%			2.05	%			2.18	%			2.27	%
Net interest margin (fully tax-equivalent) (1)		4.02	%			3.92	%			3.88	%			3.73	%			3.76	%
Loans to deposits		86.05	%			84.07	%			83.08	%			83.13	%			83.69	%
Efficiency ratio		54.68	%			56.18	%			59.00	%			60.42	%			59.56	%
Supplemental Loan Interest Income Data
Discount accretion on acquired loans	$	915			$	996			$	1,247			$	1,995			$	1,129
All other loan interest income (1)	$	101,316			$	100,008			$	97,448			$	93,383			$	96,563
Total loan interest income (1)	$	102,231			$	101,004			$	98,695			$	95,378			$	97,692

(1)	Non-GAAP measure

TriCo Bancshares—Condensed Consolidated Financial Data (unaudited)

(dollars in thousands, except per share data)
Balance Sheet Data	December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
Cash and due from banks	$	157,014			$	298,820			$	314,268			$	308,250			$	144,956
Securities, available for sale, net		1,734,623				1,743,437				1,818,032				1,854,998				1,907,494
Securities, held to maturity, net		90,544				95,446				101,672				106,868				111,866
Restricted equity securities		17,250				17,250				17,250				17,250				17,250
Loans held for sale		2,695				2,785				1,577				2,028				709
Loans:
Commercial real estate		4,853,762				4,793,394				4,730,732				4,634,446				4,577,632
Consumer		1,314,610				1,293,909				1,288,691				1,279,878				1,281,059
Commercial and industrial		464,428				453,221				467,564				457,189				471,271
Construction		301,045				298,774				304,920				298,319				279,933
Agriculture production		172,494				162,338				161,457				144,588				151,822
Leases		4,748				5,188				5,629				6,354				6,806
Total loans, gross		7,111,087				7,006,824				6,958,993				6,820,774				6,768,523
Allowance for credit losses		(125,762	)			(124,571	)			(124,455	)			(128,423	)			(125,366	)
Total loans, net		6,985,325				6,882,253				6,834,538				6,692,351				6,643,157
Premises and equipment		69,724				70,509				70,092				70,475				70,287
Cash value of life insurance		137,253				136,391				135,520				134,678				140,149
Accrued interest receivable		33,652				32,126				32,534				32,536				34,810
Goodwill		304,442				304,442				304,442				304,442				304,442
Other intangible assets		4,471				4,953				5,435				5,918				6,432
Operating leases, right-of-use		25,505				25,917				22,158				22,806				23,529
Other assets		259,565				264,507				266,465				266,999				268,647
Total assets	$	9,822,063			$	9,878,836			$	9,923,983			$	9,819,599			$	9,673,728
Deposits:
Noninterest-bearing demand deposits	$	2,594,032			$	2,544,306			$	2,559,788			$	2,539,109			$	2,548,613
Interest-bearing demand deposits		1,784,769				1,836,550				1,826,041				1,778,615				1,758,629
Savings deposits		2,775,058				2,847,168				2,879,212				2,777,840				2,657,849
Time certificates		1,110,042				1,106,437				1,110,768				1,109,768				1,122,485
Total deposits		8,263,901				8,334,461				8,375,809				8,205,332				8,087,576
Accrued interest payable		8,795				8,241				10,172				9,685				11,501
Operating lease liability		27,278				27,683				23,965				24,657				25,437
Other liabilities		141,137				145,869				128,162				131,478				137,506
Other borrowings		11,713				17,039				17,788				91,706				89,610
Junior subordinated debt		41,238				41,238				101,264				101,222				101,191
Total liabilities		8,494,062				8,574,531				8,657,160				8,564,080				8,452,821
Common stock		682,362				685,594				685,489				692,500				693,462
Retained earnings		740,244				723,668				702,690				693,383				679,907
Accumulated other comprehensive loss, net of tax		(94,605	)			(104,957	)			(121,356	)			(130,364	)			(152,462	)
Total shareholders’ equity	$	1,328,001			$	1,304,305			$	1,266,823			$	1,255,519			$	1,220,907
Quarterly Average Balance Data
Average loans	$	7,023,749			$	6,971,860			$	6,878,186			$	6,776,188			$	6,720,732
Average interest-earning assets	$	9,127,429			$	9,090,900			$	8,973,959			$	9,007,447			$	8,932,077
Average total assets	$	9,929,582			$	9,900,675			$	9,778,834			$	9,808,216			$	9,725,643
Average deposits	$	8,376,361			$	8,361,600			$	8,222,982			$	8,195,793			$	8,118,663
Average borrowings and subordinated debt	$	54,943			$	88,972			$	123,943			$	190,666			$	196,375
Average total equity	$	1,332,304			$	1,289,535			$	1,273,092			$	1,251,994			$	1,241,522
Capital Ratio Data
Total risk-based capital ratio		15.1	%			15.1	%			15.6	%			15.8	%			15.7	%
Tier 1 capital ratio		13.8	%			13.9	%			13.9	%			14.1	%			14.0	%
Tier 1 common equity ratio		13.3	%			13.4	%			13.1	%			13.3	%			13.2	%
Tier 1 leverage ratio		11.8	%			11.7	%			11.8	%			11.7	%			11.7	%
Tangible capital ratio (1)		10.7	%			10.4	%			10.0	%			9.9	%			9.7	%

(1)	Non-GAAP measure

TriCo Bancshares—Non-GAAP Financial Measures (unaudited)

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

	Three months ended												Twelve months ended
(dollars in thousands)	December 31, 2025				September 30, 2025				December 31, 2024				December 31, 2025				December 31, 2024
Net interest margin
Acquired loans discount accretion, net:
Amount (included in interest income)	$	915			$	996			$	1,129			$	5,153			$	4,329
Effect on average loan yield		0.05	%			0.06	%			0.06	%			0.08	%			0.07	%
Effect on net interest margin (FTE)		0.04	%			0.04	%			0.05	%			0.06	%			0.05	%
Net interest margin (FTE)		4.02	%			3.92	%			3.76	%			3.89	%			3.71	%
Net interest margin less effect of acquired loan discount accretion (Non-GAAP)		3.98	%			3.88	%			3.71	%			3.83	%			3.66	%

	Three months ended												Twelve months ended
(dollars in thousands)	December 31, 2025				September 30, 2025				December 31, 2024				December 31, 2025				December 31, 2024
Pre-tax pre-provision return on average assets or equity
Net income (GAAP)	$	33,634			$	34,019			$	29,034			$	121,558			$	114,868
Exclude provision for income taxes		12,942				12,449				9,854				44,601				40,236
Exclude provision for credit losses		3,000				670				1,702				12,063				6,632
Net income before provisions for income taxes and credit losses (Non-GAAP)	$	49,576			$	47,138			$	40,590			$	178,222			$	161,736
Average assets (GAAP)	$	9,929,582			$	9,900,675			$	9,725,643			$	9,854,786			$	9,757,326
Average equity (GAAP)	$	1,332,304			$	1,289,535			$	1,241,522			$	1,286,959			$	1,200,140
Return on average assets (GAAP) (annualized)		1.34	%			1.36	%			1.19	%			1.23	%			1.18	%
Pre-tax pre-provision return on average assets (Non-GAAP) (annualized)		1.98	%			1.89	%			1.66	%			1.81	%			1.66	%
Return on average equity (GAAP) (annualized)		10.02	%			10.47	%			9.30	%			9.45	%			9.57	%
Pre-tax pre-provision return on average equity (Non-GAAP) (annualized)		14.76	%			14.50	%			13.01	%			13.85	%			13.48	%

	Three months ended												Twelve months ended
(dollars in thousands)	December 31, 2025				September 30, 2025				December 31, 2024				December 31, 2025				December 31, 2024
Return on tangible common equity
Average total shareholders' equity	$	1,332,304			$	1,289,535			$	1,241,522			$	1,286,959			$	1,200,140
Exclude average goodwill		304,442				304,442				304,442				304,442				304,442
Exclude average other intangibles		4,712				5,259				7,085				5,498				8,592
Average tangible common equity (Non-GAAP)	$	1,023,150			$	979,834			$	929,995			$	977,019			$	887,106
Net income (GAAP)	$	33,634			$	34,019			$	29,034			$	121,558			$	114,868
Exclude amortization of intangible assets, net of tax effect		339				339				725				1,381				2,900
Tangible net income available to common shareholders (Non-GAAP)	$	33,973			$	34,358			$	29,759			$	122,939			$	117,768
Return on average equity (GAAP) (annualized)		10.02	%			10.47	%			9.30	%			9.45	%			9.57	%
Return on average tangible common equity (Non-GAAP)		13.17	%			13.91	%			12.73	%			12.58	%			13.28	%

	Three months ended
(dollars in thousands)	December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
Tangible shareholders' equity to tangible assets
Shareholders' equity (GAAP)	$	1,328,001			$	1,304,305			$	1,266,823			$	1,255,519			$	1,220,907
Exclude goodwill and other intangible assets, net		308,913				309,395				309,877				310,360				310,874
Tangible shareholders' equity (Non-GAAP)	$	1,019,088			$	994,910			$	956,946			$	945,159			$	910,033
Total assets (GAAP)	$	9,822,063			$	9,878,836			$	9,923,983			$	9,819,599			$	9,673,728
Exclude goodwill and other intangible assets, net		308,913				309,395				309,877				310,360				310,874
Total tangible assets (Non-GAAP)	$	9,513,150			$	9,569,441			$	9,614,106			$	9,509,239			$	9,362,854
Shareholders' equity to total assets (GAAP)		13.52	%			13.20	%			12.77	%			12.79	%			12.62	%
Tangible shareholders' equity to tangible assets (Non-GAAP)		10.71	%			10.40	%			9.95	%			9.94	%			9.72	%

	Three months ended
(dollars in thousands)	December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
Tangible common shareholders' equity per share
Tangible shareholders' equity (Non-GAAP)	$	1,019,088			$	994,910			$	956,946			$	945,159			$	910,033
Common shares outstanding at end of period		32,334,974				32,506,880				32,550,264				32,892,488				32,970,425
Common shareholders' equity (book value) per share (GAAP)	$	41.07			$	40.12			$	38.92			$	38.17			$	37.03
Tangible common shareholders' equity (tangible book value) per share (Non-GAAP)	$	31.52			$	30.61			$	29.40			$	28.73			$	27.60

 

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Investor Contact

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

Source: TriCo Bancshares