tcbk-20241024
falseTriCo Bancshares000035617100003561712024-10-242024-10-24

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
____________________
FORM 8-K
_________________________________________
Current report pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
October 24, 2024
_______________________
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(Exact name of registrant as specified in its charter)
_______________________
California0-1066194-2792841
(State or other jurisdiction of
incorporation or organization)		(Commission File No.)(I.R.S. Employer
Identification No.)
63 Constitution Drive
Chico,California95973
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (530) 898-0300
_____________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading
Symbol(s)		Name of each exchange
on which registered
Common Stock, no par valueTCBKNasdaq
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02    Results of Operations and Financial Condition
On October 24, 2024, TriCo Bancshares (the "Company") announced its unaudited financial results as of and for the three and nine months ended September 30, 2024. A copy of the press release is attached as Exhibit 99.1 to this to this Form 8-K and is incorporated herein by reference.

Item 7.01    Regulation FD Disclosure
The executive officers of the Company intend to use the materials filed herewith, in whole or in part, in one or more presentations, discussions or meetings with investors. A copy of the investor presentation is attached hereto as Exhibit 99.2.

Item 9.01    Financial Statements and Exhibits
(d) Exhibits
99.1    Press release dated October 24, 2024
99.2    Investor Presentation
104    Cover Page Interactive Data File (embedded within the Inline XBRL document).

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






SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
TRICO BANCSHARES
Date: October 24, 2024
/s/ Peter G. Wiese
Peter G. Wiese, Executive Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)


Document
Exhibit 99.1




For Immediate Release | October 24, 2024 | Chico, California
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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 quarter of the prior year
•Average yield on earning assets was 5.26%, an increase of 2 basis points over the 5.24% in the trailing quarter
•Net interest margin (FTE) was 3.71% in the recent quarter, an increase of 3 basis points over 3.68% in the trailing quarter
•Non-interest bearing deposits averaged 31.7% of total deposits during the quarter
•The average cost of total deposits was 1.52%, an increase of 7 basis points as compared to 1.45% in the trailing quarter, and an increase of 66 basis points from 0.86% in the same quarter of the prior year; the Company's total cost of deposits have increased 148 basis points since FOMC rate actions began in March 2022, which translates to a cycle-to-date deposit beta of 31.2%

Executive Commentary:

“Our financial performance for the third quarter demonstrates the effectiveness and strength of adhering to a long term plan and our teams' consistent ability to execute. In addition, recent strategic hires have been transitioning at an accelerated pace and we are looking forward to their more meaningful impact in 2025," said Rick Smith, President and CEO.

Peter Wiese, EVP and CFO added, “While both net interest margin and net interest income expanded during the quarter, we continue to execute incremental balance sheet strategies to minimize the forecasted impacts of recent and anticipated interest rate cuts. More notably, the reshaping of the yield curve with less inversion will likely provide longer term benefits to revenue and earnings per share growth.”
Selected Financial Highlights
•For the quarter ended September 30, 2024, the Company’s return on average assets was 1.20%, while the return on average equity was 9.52%; for the trailing quarter ended June 30, 2024, the Company’s return on average assets was 1.19%, while the return on average equity was 9.99%
•Diluted earnings per share were $0.88 for the third quarter of 2024, compared to $0.87 for the trailing quarter and $0.92 during the third quarter of 2023
•The loan to deposit ratio decreased to 83.2% as of September 30, 2024, as compared to 83.8% for the trailing quarter end, as a result of loan contraction during the quarter
•The efficiency ratio was 60.02% for the quarter ended September 30, 2024, as compared to 59.61% for the trailing quarter
•The provision for credit losses was approximately $0.2 million during the quarter ended September 30, 2024, as compared to $0.4 million during the trailing quarter end, with reserves on individually analyzed loans increasing during the current quarter
•The allowance for credit losses (ACL) to total loans was 1.85% as of September 30, 2024, compared to 1.83% as of the trailing quarter end, and 1.73% as of September 30, 2023. Non-performing assets to total assets were 0.45% on September 30, 2024, as compared to 0.36% as of June 30, 2024, and 0.33% at September 30, 2023. At September 30, 2024, the ACL represented 297% 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-Q for the period ended September 30, 2024, and may differ materially from the results and disclosures in this document due to, among other things, the completion of final review procedures, the occurrence of subsequent events, or the discovery of additional information.

1

Operating Results and Performance Ratios
Three months ended
September 30,
2024		June 30,
2024
(dollars and shares in thousands, except per share data)$ Change% Change
Net interest income$82,611 $81,997 $614 0.7 %
Provision for credit losses(220)(405)185 (45.7)%
Noninterest income16,495 15,866 629 4.0 %
Noninterest expense(59,487)(58,339)(1,148)2.0 %
Provision for income taxes(10,348)(10,085)(263)2.6 %
Net income$29,051 $29,034 $17 0.1 %
Diluted earnings per share$0.88 $0.87 $0.01 1.1 %
Dividends per share$0.33 $0.33 $— — %
Average common shares32,993 33,121 (128)(0.4)%
Average diluted common shares33,137 33,244 (107)(0.3)%
Return on average total assets1.20 %1.19 %
Return on average equity9.52 %9.99 %
Efficiency ratio60.02 %59.61 %
Three months ended
September 30,
(dollars and shares in thousands, except per share data)20242023$ Change% Change
Net interest income$82,611 $88,123 $(5,512)(6.3)%
Provision for credit losses(220)(4,155)3,935 (94.7)%
Noninterest income16,495 15,984 511 3.2 %
Noninterest expense(59,487)(57,878)(1,609)2.8 %
Provision for income taxes(10,348)(11,484)1,136 (9.9)%
Net income$29,051 $30,590 $(1,539)(5.0)%
Diluted earnings per share$0.88 $0.92 $(0.04)(4.3)%
Dividends per share$0.33 $0.30 $0.03 10.0 %
Average common shares32,993 33,263 (270)(0.8)%
Average diluted common shares33,137 33,319 (182)(0.5)%
Return on average total assets1.20 %1.23 %
Return on average equity9.52 %10.91 %
Efficiency ratio60.02 %55.59 %
Nine months ended
September 30,
(dollars and shares in thousands)20242023$ Change% Change
Net interest income$247,344 $270,060 $(22,716)(8.4)%
Provision for credit losses(4,930)(18,000)13,070 (72.6)%
Noninterest income48,132 45,360 2,772 6.1 %
Noninterest expense(174,330)(172,915)(1,415)0.8 %
Provision for income taxes(30,382)(33,190)2,808 (8.5)%
Net income$85,834 $91,315 $(5,481)(6.0)%
Diluted earnings per share$2.58 $2.74 $(0.16)(5.8)%
Dividends per share$0.99 $0.90 $0.09 10.0 %
Average common shares33,119 33,259 (140)(0.4)%
Average diluted common shares33,251 33,356 (105)(0.3)%
Return on average total assets1.17 %1.24 %
Return on average equity9.67 %11.06 %
Efficiency ratio59.00 %54.82 %
2

Balance Sheet Data
Total loans outstanding were $6.7 billion as of September 30, 2024, a decrease of $24.8 million or 0.4% over September 30, 2023, and decreased by $58.6 million or 3.5% annualized as compared to the trailing quarter ended June 30, 2024. Investments increased by $30.4 million and decreased by $216.7 million for the three and twelve month periods ended September 30, 2024, and ended the quarter with a balance of $2.12 billion or 21.5% of total assets. Quarterly average earning assets to quarterly total average assets was 92.0% on September 30, 2024, compared to 91.7% at September 30, 2023. The loan-to-deposit ratio was 83.2% on September 30, 2024, as compared to 83.8% at September 30, 2023. The Company did not utilize brokered deposits during 2024 or 2023 and continues to rely on organic deposit customers and short-term borrowings to fund cash flow timing differences.
Total shareholders' equity increased by $64.0 million during the quarter ended September 30, 2024, as net income of $29.1 million and a $44.5 million decrease in accumulated other comprehensive losses was partially offset by cash dividend payments on common stock of approximately $10.9 million. As a result, the Company’s book value grew to $37.55 per share at September 30, 2024, compared to $32.18 at September 30, 2023. 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 $28.09 per share at September 30, 2024, as compared to $22.67 at September 30, 2023. Changes in the fair value of available-for-sale investment securities, net of deferred taxes continue to create moderate levels of volatility in tangible book value per share.
Trailing Quarter Balance Sheet Change
Ending balancesSeptember 30,
2024		June 30,
2024		Annualized
 % Change
(dollars in thousands)$ Change
Total assets$9,823,890 $9,741,399 $82,491 3.4 %
Total loans6,683,891 6,742,526 (58,635)(3.5)
Total investments2,116,469 2,086,090 30,379 5.8 
Total deposits8,037,091 8,050,230 (13,139)(0.7)
Total other borrowings266,767 247,773 18,994 30.7 
Loans outstanding decreased by $58.6 million or 3.5% on an annualized basis during the quarter ended September 30, 2024. During the quarter, loan originations/draws totaled approximately $351.5 million while payoffs/repayments of loans totaled $418.8 million, which compares to originations/draws and payoffs/repayments during the trailing quarter ended of $310.1 million and $368.7 million, respectively. Origination volume and activity levels remain slightly lower relative to the comparative period in 2023 due in part to disciplined pricing and underwriting, as well as decreased borrower demand given economic uncertainties. The increase in payoffs/repayments as compared to the trailing quarter was spread amongst numerous borrowers, regions and loan types.
Investment security balances increased $30.4 million or 5.8% on an annualized basis during the quarter as a result of security purchases totaling $69.4 million, in addition to net increases in the market value of securities of $63.2 million, partially offset by net prepayments, and maturities, collectively totaling approximating $99.3 million and, to a lesser extent, sales totaling $3.0 million. Investment security purchases were comprised of floating rate instruments tied to SOFR with an initial weighted average coupon of 6.68% and a weighted average life of 5.9 years. 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 $13.1 million or 0.7% annualized during the period, primarily due to declines in interest-bearing demand deposits, partially offset by increases in time certificates and savings deposits.
Other borrowings totaled $266.8 million at September 30, 2024, representing a net increase of $19.0 million from the trailing quarter. However, on balance sheet liquidity increased during the quarter by $113.6 million to $320.1 million as of September 30, 2024.
Average Trailing Quarter Balance Sheet Change
Quarterly average balances for the period endedSeptember 30,
2024		June 30,
2024		Annualized
% Change
(dollars in thousands)$ Change
Total assets$9,666,979 $9,782,228 $(115,249)(4.7)%
Total loans6,690,326 6,792,303 (101,977)(6.0)
Total investments2,108,359 2,141,291 (32,932)(6.2)
Total deposits8,020,936 8,024,441 (3,505)(0.2)
Total other borrowings175,268 325,604 (150,336)(184.7)
3

Year Over Year Balance Sheet Change
Ending balancesAs of September 30,% Change
(dollars in thousands)20242023$ Change
Total assets$9,823,890 $9,897,006 $(73,116)(0.7)%
Total loans6,683,891 6,708,666 (24,775)(0.4)
Total investments2,116,469 2,333,162 (216,693)(9.3)
Total deposits8,037,091 8,009,643 27,448 0.3 
Total other borrowings266,767 537,975 (271,208)(50.4)

Primary Sources of Liquidity
(dollars in thousands)September 30, 2024June 30, 2024September 30, 2023
Borrowing capacity at correspondent banks and FRB$2,757,640 $2,998,009 $2,927,065 
Less: borrowings outstanding(250,000)(225,000)(500,000)
Unpledged available-for-sale (AFS) investment securities
1,312,745 1,285,185 1,702,265 
Cash held or in transit with FRB
274,908 163,809 72,049 
    Total primary liquidity$4,095,293 $4,222,003 $4,201,379 
Estimated uninsured deposit balances$2,513,313 $2,486,910 $2,406,552 
On September 30, 2024, the Company's primary sources of liquidity represented 51% of total deposits and 163% of estimated total uninsured (excluding collateralized municipal deposits and intercompany balances) deposits, respectively. As secondary sources of liquidity, the Company's held-to-maturity investment securities had a fair value of $112.0 million, including approximately $5.3 million in net unrealized losses.

Net Interest Income and Net Interest Margin
During the twelve-month period ended September 30, 2024, the Company's yield on total loans increased 32 basis points to 5.83% for the three months ended September 30, 2024, from 5.51% for the three months ended September 30, 2023. The tax equivalent yield on the Company's investment security portfolio was 3.46% for the quarter ended September 30, 2024, an increase of 7 basis points from the 3.39% for the three months ended September 30, 2023. The cost of total interest-bearing deposits and total interest-bearing liabilities increased by 87 basis points and 69 basis points, respectively, between the three-month periods ended September 30, 2024 and 2023. Since FOMC rate actions began in March 2022, the Company's cost of total deposits has increased 148 basis points which translates to a cycle to date deposit beta of 31.2%.
The Company continues to manage its cost of deposits through the use of various pricing and product mix strategies. As of September 30, 2024, December 31, 2023, and September 30, 2023, deposits priced utilizing these strategies totaled $1.4 billion, $1.3 billion and $1.2 billion, respectively, and carried weighted average rates of 3.80%, 3.80%, and 3.53%, respectively.
Three months ended
September 30,
2024		June 30,
2024
(dollars in thousands)Change% Change
Interest income$117,347 $117,032 $315 0.3 %
Interest expense(34,736)(35,035)299 (0.9)%
Fully tax-equivalent adjustment (FTE) (1)
269 275 (6)(2.2)%
Net interest income (FTE)$82,880 $82,272 $608 0.7 %
Net interest margin (FTE)3.71 %3.68 %
Acquired loans discount accretion, net:
Amount (included in interest income)$1,018 $850 $168 19.8 %
Net interest margin less effect of acquired loan discount accretion(1)
3.66 %3.64 %0.02 %

4

Three months ended
September 30,
(dollars in thousands)20242023Change% Change
Interest income$117,347 $112,380 $4,967 4.4 %
Interest expense(34,736)(24,257)(10,479)43.2 %
Fully tax-equivalent adjustment (FTE) (1)
269 405 (136)(33.6)%
Net interest income (FTE)$82,880 $88,528 $(5,648)(6.4)%
Net interest margin (FTE)3.71 %3.88 %
Acquired loans discount accretion, net:
Amount (included in interest income)$1,018 $1,324 $(306)(23.1)%
Net interest margin less effect of acquired loan discount accretion(1)
3.66 %3.82 %(0.16)%
Nine months ended
September 30,
(dollars in thousands)20242023Change% Change
Interest income$349,796 $322,445 $27,351 8.5 %
Interest expense(102,452)(52,385)(50,067)95.6 %
Fully tax-equivalent adjustment (FTE) (1)
819 1,176 (357)(30.4)%
Net interest income (FTE)$248,163 $271,236 $(23,073)(8.5)%
Net interest margin (FTE)3.69 %4.01 %
Acquired loans discount accretion, net:
Amount (included in interest income)$3,200 $4,192 $(992)(23.7)%
Net interest margin less effect of acquired loan discount accretion(1)
3.64 %3.95 %(0.31)%

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


5

Analysis Of Change In Net Interest Margin On Earning Assets

Three months endedThree months endedThree months ended
(dollars in thousands)September 30, 2024June 30, 2024September 30, 2023
Average
Balance		Income/
Expense		Yield/
Rate		Average
Balance		Income/
Expense		Yield/
Rate		Average
Balance		Income/
Expense		Yield/
Rate
Assets
Loans$6,690,326 $98,085 5.83 %$6,792,303 $98,229 5.82 %$6,597,400 $91,707 5.51 %
Investments-taxable1,972,859 17,188 3.47 %2,003,124 17,004 3.41 %2,246,569 18,990 3.35 %
Investments-nontaxable (1)
135,500 1,166 3.42 %138,167 1,190 3.46 %182,766 1,755 3.81 %
Total investments2,108,359 18,354 3.46 %2,141,291 18,194 3.42 %2,429,335 20,745 3.39 %
Cash at Fed Reserve and other banks93,538 1,177 5.01 %68,080 884 5.22 %26,654 333 4.96 %
Total earning assets8,892,223 117,616 5.26 %9,001,674 117,307 5.24 %9,053,389 112,785 4.94 %
Other assets, net774,756 780,554 820,851 
Total assets$9,666,979 $9,782,228 $9,874,240 
Liabilities and shareholders’ equity
Interest-bearing demand deposits$1,736,442 $6,132 1.40 %$1,769,370 $6,215 1.41 %$1,751,625 $3,916 0.89 %
Savings deposits2,686,303 13,202 1.96 %2,673,272 12,260 1.84 %2,790,197 9,526 1.35 %
Time deposits1,055,612 11,354 4.28 %1,016,190 10,546 4.17 %535,715 3,937 2.92 %
Total interest-bearing deposits5,478,357 30,688 2.23 %5,458,832 29,021 2.14 %5,077,537 17,379 1.36 %
Other borrowings175,268 2,144 4.87 %325,604 4,118 5.09 %449,274 5,106 4.51 %
Junior subordinated debt101,150 1,904 7.49 %101,128 1,896 7.54 %101,070 1,772 6.96 %
Total interest-bearing liabilities5,754,775 34,736 2.40 %5,885,564 35,035 2.39 %5,627,881 24,257 1.71 %
Noninterest-bearing deposits2,542,579 2,565,609 2,965,564 
Other liabilities155,115 161,731 168,391 
Shareholders’ equity1,214,510 1,169,324 1,112,404 
Total liabilities and shareholders’ equity$9,666,979 $9,782,228 $9,874,240 
Net interest rate spread (1) (2)
2.86 %2.85 %3.23 %
Net interest income and margin (1) (3)
$82,880 3.71 %$82,272 3.68 %$88,528 3.88 %
(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 September 30, 2024, increased $0.6 million or 0.7% to $82.9 million compared to $82.3 million during the three months ended June 30, 2024. Net interest margin totaled 3.71% for the three months ended September 30, 2024, an increase of 3 basis points from the trailing quarter. The increase in net interest income is primarily attributed to a $2.0 million decline in interest expense on borrowings due to a $150.3 million decrease in the average balance of borrowings during the three months ended September 30, 2024 compared to the trailing quarter. This decline in borrowing expense was partially offset by an increase in deposit interest expense totaling $1.7 million related to changes in product mix, as customers continued to migrate towards higher yielding term deposit accounts during the quarter. Deposit cost increases during the current quarter were also influenced by continued competitive pricing pressures.

As compared to the same quarter in the prior year, average loan yields increased 32 basis points from 5.51% during the three months ended September 30, 2023, to 5.83% during the three months ended September 30, 2024. The accretion of discounts from acquired loans added 6 basis points and 8 basis points to loan yields during the quarters ended September 30, 2024 and September 30, 2023, respectively. The cost of interest-bearing deposits increased by 87 basis points between the quarter ended September 30, 2024, and the same quarter of the prior year. In addition, the average balance of noninterest-bearing deposits decreased by $423.0 million from the three-month average for the period ended September 30, 2023 amidst a continued migration of customer funds to interest-bearing products.

For the quarter ended September 30, 2024, the ratio of average total noninterest-bearing deposits to total average deposits was 31.7%, as compared to 32.0% and 36.9% for the quarters ended June 30, 2024 and September 30, 2023, respectively.


6

(dollars in thousands)Nine months ended September 30, 2024Nine months ended September 30, 2023
Average
Balance		Income/
Expense		Yield/
Rate		Average
Balance		Income/
Expense		Yield/
Rate
Assets
Loans$6,755,916 $292,799 5.79 %$6,493,585 $260,868 5.37 %
Investments-taxable2,034,336 52,021 3.42 %2,328,883 56,681 3.25 %
Investments-nontaxable (1)
137,515 3,548 3.45 %184,524 5,096 3.69 %
Total investments2,171,851 55,569 3.42 %2,513,407 61,777 3.29 %
Cash at Fed Reserve and other banks58,792 2,247 5.11 %27,606 976 4.73 %
Total earning assets8,986,559 350,615 5.21 %9,034,598 323,621 4.79 %
Other assets, net781,406 832,501 
Total assets$9,767,965 $9,867,099 
Liabilities and shareholders’ equity
Interest-bearing demand deposits$1,738,876 $17,294 1.33 %$1,694,438 $6,476 0.51 %
Savings deposits2,670,555 36,362 1.82 %2,818,817 20,616 0.98 %
Time deposits961,577 29,582 4.11 %413,359 6,889 2.23 %
Total interest-bearing deposits5,371,008 83,238 2.07 %4,926,614 33,981 0.92 %
Other borrowings361,175 13,640 5.04 %402,016 13,318 4.43 %
Junior subordinated debt101,128 5,574 7.36 %101,057 5,086 6.73 %
Total interest-bearing liabilities5,833,311 102,452 2.35 %5,429,687 52,385 1.29 %
Noninterest-bearing deposits2,584,705 3,153,807 
Other liabilities163,704 179,483 
Shareholders’ equity1,186,245 1,104,122 
Total liabilities and shareholders’ equity$9,767,965 $9,867,099 
Net interest rate spread (1) (2)
2.86 %3.50 %
Net interest income and margin (1) (3)
$248,163 3.69 %$271,236 4.01 %
(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 September 30, 2024, the Company's loan portfolio consisted of approximately $6.7 billion in outstanding principal with a weighted average coupon rate of 5.49%. During the three-month periods ending September 30, 2024, June 30, 2024, and September 30, 2023, the weighted average coupon on loan production in the quarter was 7.63%, 7.98% and 7.31%, respectively. Included in the September 30, 2024, total loans are adjustable rate loans totaling $4.2 billion, of which, $891.6 million are considered floating based on the Wall Street Prime index. In addition, the Company holds certain investment securities with fair values totaling $371.1 million which are subject to repricing on not less than a quarterly basis.

Asset Quality and Credit Loss Provisioning
During the three months ended September 30, 2024, the Company recorded a provision for credit losses of $0.2 million, as compared to $0.4 million during the trailing quarter, and $4.2 million during the third quarter of 2023.
Three months endedNine months ended
(dollars in thousands)September 30,
2024		June 30,
2024		September 30,
2023		September 30,
2024		September 30,
2023
Addition to allowance for credit losses320 335 3,120 4,670 16,415 
Addition to (reversal of) reserve for unfunded loan commitments
(100)70 1,035 260 1,585 
    Total provision for credit losses220 405 4,155 4,930 18,000 
The provision for credit losses on loans of $0.3 million during the recent quarter was the result of net charge-offs approximating $0.1 million and decreases in reserves for qualitative factors due to improved concentration levels and overall lower loan balances, offset by a $3.7 million increase in specific reserves for individually evaluated credits within the commercial and industrial portfolio.

7

Three Months Ended September 30,Nine months ended September 30,
(dollars in thousands)2024202320242023
Balance, beginning of period$123,517 $117,329 $121,522 $105,680 
Provision for credit losses320 3,120 4,670 16,415 
Loans charged-off(444)(5,357)(3,329)(7,391)
Recoveries of previously charged-off loans367 720 897 1,108 
Balance, end of period$123,760 $115,812 $123,760 $115,812 
The allowance for credit losses (ACL) was $123.8 million or 1.85% of total loans as of September 30, 2024. The Company utilizes a forecast period of approximately eight quarters and obtains the forecast data from publicly available sources as of the balance sheet date. This forecast data continues to evolve and includes improving shifts in the magnitude of changes for both the unemployment and GDP factors leading up to the balance sheet date. Core inflation is slowing but prices remain elevated relative to wage increases, as reflected by higher living costs such as housing, energy and general services. Actions by the Federal Reserve to cut rates during 2024 and beyond may help improve this outlook overall, but the uncertainty associated with the extent and timing of these potential reductions has inhibited a material change to forecasted reserve levels. Furthermore, geopolitical risks remain elevated and appear to be getting worse, which may lead to further negative effects on domestic economic outcomes. As a result, 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.
Loans past due 30 days or more increased by $7.5 million during the quarter ended September 30, 2024, to $37.9 million, as compared to $30.4 million at June 30, 2024. The majority of loans identified as past due are well-secured by collateral, and approximately $16.3 million is less than 90 days delinquent. Non-performing loans were $41.6 million at September 30, 2024, an increase of $8.9 million from $32.8 million as of June 30, 2024, and an increase of $11.8 million from $29.8 million as of September 30, 2023. Management continues to proactively work with these borrowers to identify actionable and appropriate resolution strategies which are customary for the industries. Of the $41.6 million loans designated as non-performing as of September 30, 2024, approximately $10.0 million are current or less than 30 days past due with respect to payments required under their existing loan agreements.
September 30,% of Loans OutstandingJune 30,% of Loans OutstandingSeptember 30,% of Loans Outstanding
(dollars in thousands)202420242023
Risk Rating:
Pass$6,461,451 96.7 %$6,536,223 96.9 %$6,532,424 97.4 %
Special Mention104,759 1.6 %101,324 1.5 %94,614 1.4 %
Substandard117,681 1.8 %104,979 1.6 %81,628 1.2 %
Total$6,683,891 $6,742,526 $6,708,666 
Classified loans to total loans1.76 %1.56 %1.22 %
Loans past due 30+ days to total loans0.57 %0.45 %0.12 %
The ratio of classified loans to total loans of 1.76% as of September 30, 2024, increased 20 basis points from June 30, 2024, and increased 55 basis points from the comparative quarter ended 2023. The change in classified loans outstanding as compared to the trailing quarter totaled $16.1 million. Loans with the risk grade classification substandard increased by $12.7 million over the trailing quarter and relate primarily to the commercial and industrial portfolio. As a percentage of total loans outstanding, classified assets remain consistent with volumes experienced prior to the recent quantitative easing cycle spurred by the COVID pandemic and reflect management's historically conservative approach to credit risk monitoring. The Company's combined criticized loan balances totaled $222.4 million as of September 30, 2024, an increase of $46.2 million from September 30, 2023.
Outstanding balances on construction loans, which have historically been associated with elevated levels of risk, experienced balance reductions of $7.3 million during the current quarter and $44.9 million since September 30, 2023. These reductions were primarily associated with balances that were converted to term loans upon the completion of construction and achievement of stabilized occupancy, and were partially offset by new draws or originations.
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 September 30, 2024, other real estate owned consisted of 10 properties with a carrying value of approximately $2.8 million, compared to 10 properties with a carrying value of approximately $2.5 million as of June 30, 2024. Non-performing assets of $44.4 million at September 30, 2024, represented 0.45% of total assets, a change from the $35.3 million or 0.36% and $32.7 million or 0.33% as of June 30, 2024 and September 30, 2023, respectively.
8

Allocation of Credit Loss Reserves by Loan Type
As of September 30, 2024As of June 30, 2024As of September 30, 2023
(dollars in thousands)Amount% of Loans OutstandingAmount% of Loans OutstandingAmount% of Loans Outstanding
Commercial real estate:
     CRE - Non-Owner Occupied$36,206 1.61 %$37,155 1.66 %$33,723 1.55 %
     CRE - Owner Occupied15,382 1.62 %15,873 1.67 %14,503 1.51 %
     Multifamily15,735 1.54 %15,973 1.60 %14,239 1.48 %
     Farmland4,016 1.50 %4,031 1.52 %4,210 1.51 %
Total commercial real estate loans71,339 1.59 %73,032 1.64 %66,675 1.53 %
Consumer:
     SFR 1-4 1st Liens14,366 1.66 %14,604 1.65 %13,535 1.56 %
     SFR HELOCs and Junior Liens10,185 2.87 %10,087 2.91 %10,163 2.88 %
     Other2,953 4.70 %2,983 4.30 %2,920 4.44 %
Total consumer loans 27,504 2.14 %27,674 2.13 %26,618 2.07 %
Commercial and Industrial14,453 2.98 %12,128 2.21 %12,290 2.05 %
Construction7,119 2.58 %7,466 2.63 %8,097 2.52 %
Agricultural Production3,312 2.30 %3,180 2.27 %2,125 1.72 %
Leases33 0.44 %37 0.44 %7 0.09 %
     Allowance for credit losses123,760 1.85 %123,517 1.83 %115,812 1.73 %
Reserve for unfunded loan commitments6,110 6,210 5,900 
     Total allowance for credit losses$129,870 1.92 %$129,727 1.92 %$121,712 1.81 %

In addition to the allowance for credit losses above, the Company has acquired various performing loans whose fair value as of the acquisition date was determined to be less than the principal balance owed on those loans. This difference represents the collective discount of credit, interest rate and liquidity measurements which is expected to be amortized over the life of the loans. As of September 30, 2024, the unamortized discount associated with acquired loans totaled $21.4 million, which, when combined with the total allowance for credit losses above, represents 2.26% of total loans.


Non-interest Income
Three months ended
(dollars in thousands)September 30, 2024June 30, 2024Change% Change
ATM and interchange fees$6,472 $6,372 $100 1.6 %
Service charges on deposit accounts4,979 4,847 132 2.7 %
Other service fees1,224 1,286 (62)(4.8)%
Mortgage banking service fees439 438 1 0.2 %
Change in value of mortgage servicing rights(332)(147)(185)125.9 %
Total service charges and fees12,782 12,796 (14)(0.1)%
Increase in cash value of life insurance786 831 (45)(5.4)%
Asset management and commission income1,502 1,359 143 10.5 %
Gain on sale of loans549 388 161 41.5 %
Lease brokerage income62 154 (92)(59.7)%
Sale of customer checks303 301 2 0.7 %
(Loss) gain on sale or exchange of investment securities2 (45)47 (104.4)%
(Loss) gain on marketable equity securities356 (121)477 (394.2)%
Other income153 203 (50)(24.6)%
Total other non-interest income3,713 3,070 643 20.9 %
Total non-interest income$16,495 $15,866 $629 4.0 %
Total non-interest income increased $0.6 million or 4.0% to $16.5 million during the three months ended September 30, 2024, compared to $15.9 million during the quarter ended June 30, 2024. Net gains on the change in value of equity securities totaled $0.4 million during the quarter and included $0.3 million in benefit from the valuation change in Visa equity securities, which were also disposed of during the quarter. The remaining various components of non-interest income are largely consistent period over period.
9

Three months ended September 30,
(dollars in thousands)20242023Change% Change
ATM and interchange fees$6,472 $6,728 $(256)(3.8)%
Service charges on deposit accounts4,979 4,851 128 2.6 %
Other service fees1,224 1,142 82 7.2 %
Mortgage banking service fees439 445 (6)(1.3)%
Change in value of mortgage servicing rights(332)(91)(241)264.8 %
Total service charges and fees12,782 13,075 (293)(2.2)%
Increase in cash value of life insurance786 684 102 14.9 %
Asset management and commission income1,502 1,141 361 31.6 %
Gain on sale of loans549 382 167 43.7 %
Lease brokerage income62 160 (98)(61.3)%
Sale of customer checks303 396 (93)(23.5)%
(Loss) gain on sale or exchange of investment securities2 — 2 — %
(Loss) gain on marketable equity securities356 (81)437 (539.5)%
Other income153 227 (74)(32.6)%
Total other non-interest income3,713 2,909 804 27.6 %
Total non-interest income$16,495 $15,984 $511 3.2 %
Non-interest income increased $0.5 million or 3.2% to $16.5 million during the three months ended September 30, 2024, compared to $16.0 million during the comparative quarter ended September 30, 2023. Elevated activity and volumes of assets under management drove an increase in asset management and commission income, in addition to the benefit mentioned above related to Visa stock. These increases were partially offset by a decline in interchange fees earned related to decreased customer activity in the third quarter of 2024 as compared to the equivalent quarter in 2023.

Nine months ended September 30,
(dollars in thousands)20242023Change% Change
ATM and interchange fees$19,013 $19,928 $(915)(4.6)%
Service charges on deposit accounts14,489 12,863 1,626 12.6 %
Other service fees3,876 3,300 576 17.5 %
Mortgage banking service fees1,305 1,364 (59)(4.3)%
Change in value of mortgage servicing rights(468)(215)(253)117.7 %
Total service charges and fees38,215 37,240 975 2.6 %
Increase in cash value of life insurance2,420 2,274 146 6.4 %
Asset management and commission income3,989 3,233 756 23.4 %
Gain on sale of loans1,198 883 315 35.7 %
Lease brokerage income377 332 45 13.6 %
Sale of customer checks916 1,091 (175)(16.0)%
(Loss) gain on sale or exchange of investment securities(43)(164)121 (73.8)%
(Loss) gain on marketable equity securities207 (81)288 (355.6)%
Other income853 552 301 54.5 %
Total other non-interest income9,917 8,120 1,797 22.1 %
Total non-interest income$48,132 $45,360 $2,772 6.1 %
Non-interest income increased $2.8 million or 6.1% to $48.1 million during the nine months ended September 30, 2024, compared to $45.4 million during the comparative nine months ended September 30, 2023. As noted above, interchange fees as driven by customer activities was elevated in the 2023 period and resulted in a decrease of $0.9 million as compared to the nine months ended September 30, 2024. Meanwhile, service charges on deposit accounts increased by $1.6 million or 12.6% as compared to the equivalent period in 2023 following $0.9 million in waived or reversed fees as a courtesy to customers in the 2023 year. As noted above, elevated activity within asset management and the gain on Visa stock further contributed to the overall improvement.

10


Non-interest Expense
Three months ended
(dollars in thousands)September 30, 2024June 30, 2024Change% Change
Base salaries, net of deferred loan origination costs$24,407 $23,852 $555 2.3 %
Incentive compensation4,361 4,711 (350)(7.4)%
Benefits and other compensation costs6,782 6,838 (56)(0.8)%
Total salaries and benefits expense35,550 35,401 149 0.4 %
Occupancy4,191 4,063 128 3.2 %
Data processing and software5,258 5,094 164 3.2 %
Equipment1,374 1,330 44 3.3 %
Intangible amortization1,030 1,030 — — %
Advertising1,152 819 333 40.7 %
ATM and POS network charges1,712 1,987 (275)(13.8)%
Professional fees1,893 1,814 79 4.4 %
Telecommunications507 558 (51)(9.1)%
Regulatory assessments and insurance1,256 1,144 112 9.8 %
Postage335 340 (5)(1.5)%
Operational loss603 244 359 147.1 %
Courier service542 559 (17)(3.0)%
(Gain) loss on sale or acquisition of foreclosed assets26 — 26 — %
(Gain) loss on disposal of fixed assets6 1 5 500.0 %
Other miscellaneous expense4,052 3,955 97 2.5 %
Total other non-interest expense23,937 22,938 999 4.4 %
Total non-interest expense$59,487 $58,339 $1,148 2.0 %
Average full-time equivalent staff1,1611,1601 0.1 %
Total non-interest expense for the quarter ended September 30, 2024, increased $1.1 million or 2.0% to $59.5 million as compared to $58.3 million during the trailing quarter ended June 30, 2024. Total salaries and benefits expense increased by $0.1 million or 0.4%, reflecting the increase of $0.6 million in salaries, partially offset by a decline of $0.4 million in incentive compensation accruals related to production volumes of both loans and deposits. Advertising expense increased by $0.3 million as compared to the trailing quarter following increased spend on promotional activities, and operational losses increased by $0.4 million during the same period from increases in volume of fraud and robbery losses.
Three months ended September 30,
(dollars in thousands)20242023Change% Change
Base salaries, net of deferred loan origination costs$24,407 $23,616 $791 3.3 %
Incentive compensation4,361 4,391 (30)(0.7)%
Benefits and other compensation costs6,782 6,456 326 5.0 %
Total salaries and benefits expense35,550 34,463 1,087 3.2 %
Occupancy4,191 3,948 243 6.2 %
Data processing and software5,258 5,246 12 0.2 %
Equipment1,374 1,503 (129)(8.6)%
Intangible amortization1,030 1,590 (560)(35.2)%
Advertising1,152 881 271 30.8 %
ATM and POS network charges1,712 1,606 106 6.6 %
Professional fees1,893 1,752 141 8.0 %
Telecommunications507 567 (60)(10.6)%
Regulatory assessments and insurance1,256 1,194 62 5.2 %
Postage335 306 29 9.5 %
Operational loss603 474 129 27.2 %
Courier service542 492 50 10.2 %
(Gain) loss on sale or acquisition of foreclosed assets26 (152)178 (117.1)%
(Gain) loss on disposal of fixed assets6 4 2 50.0 %
Other miscellaneous expense4,052 4,004 48 1.2 %
Total other non-interest expense23,937 23,415 522 2.2 %
Total non-interest expense$59,487 $57,878 $1,609 2.8 %
Average full-time equivalent staff1,1611,215(54)(4.4)%
11

Total non-interest expense increased $1.6 million or 2.8% to $59.5 million during the three months ended September 30, 2024, as compared to $57.9 million for the quarter ended September 30, 2023. Total salaries and benefits expense increased by $1.1 million or 3.2%, reflecting the increase of $0.8 million in salaries and $0.3 million in benefits and other costs.
Nine months ended September 30,
(dollars in thousands)20242023Change% Change
Base salaries, net of deferred loan origination costs$72,279 $70,675 $1,604 2.3 %
Incentive compensation12,329 11,663 666 5.7 %
Benefits and other compensation costs20,647 19,402 1,245 6.4 %
Total salaries and benefits expense105,255 101,740 3,515 3.5 %
Occupancy12,205 12,099 106 0.9 %
Data processing and software15,459 13,916 1,543 11.1 %
Equipment4,060 4,322 (262)(6.1)%
Intangible amortization3,090 4,902 (1,812)(37.0)%
Advertising2,733 2,656 77 2.9 %
ATM and POS network charges5,360 5,217 143 2.7 %
Professional fees5,047 5,326 (279)(5.2)%
Telecommunications1,576 1,971 (395)(20.0)%
Regulatory assessments and insurance3,651 3,979 (328)(8.2)%
Postage983 916 67 7.3 %
Operational loss1,199 1,999 (800)(40.0)%
Courier service1,581 1,314 267 20.3 %
(Gain) loss on sale or acquisition of foreclosed assets(12)(152)140 (92.1)%
(Gain) loss on disposal of fixed assets12 22 (10)(45.5)%
Other miscellaneous expense12,131 12,688 (557)(4.4)%
Total other non-interest expense69,075 71,175 (2,100)(3.0)%
Total non-interest expense$174,330 $172,915 $1,415 0.8 %
Average full-time equivalent staff1,1701,215(45)(3.7)%
Total non-interest expense increased $1.4 million or 0.8% to $174.3 million during the nine months ended September 30, 2024, as compared to $172.9 million for the nine months ended September 30, 2023. This was largely attributed to an increase of $3.5 million or 3.5% in total salaries and benefits expense to $105.3 million, from annual compensation adjustments and other routine increases in benefits and compensation. Salaries expense was also impacted by an increase in average compensation per employee as various strategic talent acquisitions were made in order to further prepare the Company to execute its growth objectives beyond $10 billion in total assets. Additionally, data processing and software expenses increased by $1.5 million or 11.1% related to ongoing investments in the Company's data management and security infrastructure. These increases were partially offset by declines in non-cash intangible amortization expense of $1.8 million or 37.0% and reductions in operational losses of $0.8 million or 40.0% due to non-recurring ATM burglary expenses totaling $0.7 million in the comparative period.


Provision for Income Taxes
The Company’s effective tax rate was 26.3% for the quarter ended September 30, 2024, as compared to 25.8% for the quarter ended June 30, 2024, and 28.4% for the year ended December 31, 2023. 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.










12

Investor Contact
Peter G. Wiese, EVP & CFO, (530) 898-0300
About TriCo Bancshares
Established in 1975, Tri Counties Bank is a wholly-owned subsidiary of TriCo Bancshares (NASDAQ: TCBK) headquartered in Chico, California, providing a unique brand of customer Service with Solutions available in traditional stand-alone and in-store bank branches and loan production offices in communities throughout California. Tri Counties Bank provides an extensive and competitive breadth of consumer, small business and commercial banking financial services, along with convenient around-the-clock ATMs, online and mobile banking access. Brokerage services are provided by Tri Counties Advisors through affiliation with Raymond James Financial Services, Inc. Visit www.TriCountiesBank.com to learn more.
Forward-Looking 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 the Company. 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: the conditions of the United States economy in general and the strength of the local economies in which we conduct operations; the impact of any future federal government shutdown and uncertainty regarding the federal government’s debt limit or changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; the impacts of inflation, interest rate, market and monetary fluctuations on the Company's business condition and financial operating results; the impact of changes in financial services industry policies, laws and regulations; regulatory restrictions affecting our ability to successfully market and price our products to consumers; 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 that may or may not be caused by climate change and their effects on the Company's customers and the economic and business environments in which the Company operates; the impact of a slowing U.S. economy, decreases in housing and commercial real estate prices, and potentially increased unemployment on the performance of our loan portfolio, 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; adverse developments with respect to U.S. or global economic conditions and other uncertainties, including the impact of supply chain disruptions, commodities prices, inflationary pressures and labor shortages on the economic recovery and our business; the impacts of international hostilities, wars, terrorism or geopolitical events; adverse developments in the financial services industry generally such as the recent bank failures and any related impact on depositor behavior or investor sentiment; risks related to the sufficiency of liquidity; 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 regulatory and financial impacts associated with exceeding $10 billion in total assets; the negative impact on our reputation and profitability in the event customers experience economic harm or in the event that regulatory violations are identified; the ability to execute our business plan in new markets; the future operating or financial performance of the Company, including our outlook for future growth and changes in the level and direction of our nonperforming assets and charge-offs; the appropriateness of the allowance for credit losses, including the assumptions made under our current expected credit losses model; any deterioration in values of California real estate, both residential and commercial; the effectiveness of the Company's asset management activities managing the mix of earning assets and in improving, resolving or liquidating lower-quality assets; the effect of changes in the financial performance and/or condition of our borrowers; changes in accounting standards and practices; changes in consumer spending, borrowing and savings habits; our ability to attract and maintain deposits and other sources of liquidity; the effects of changes in the level or cost of checking or savings account deposits on our funding costs and net interest margin; 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; the challenges of attracting, integrating and retaining key employees; the vulnerability of the Company's operational or security systems or infrastructure, the systems of third-party vendors or other service providers with whom the Company contracts, and the Company's 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; the impact of the 2023 cyber security ransomware incident, including the pending litigation, on our operations and reputation; 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 transition from the LIBOR to new interest rate benchmarks; the emergence or continuation of widespread health emergencies or pandemics; the Company’s 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 Annual Report on Form 10-K for the year ended December 31, 2023, which has been filed with the Securities and Exchange Commission (the “SEC”) and all subsequent filings with the SEC under Sections 13(a), 13(c), 14, and 15(d) of the Securities Act of 1934, as amended. Such filings are also available in the “Investor Relations” section of our website, https://www.tcbk.com/investor-relations and in other documents we file with the SEC. Annualized, pro forma, projections and estimates are not forecasts and may not reflect actual results. We undertake no obligation (and expressly disclaim any such obligation) to update or alter our forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

13


TriCo Bancshares—Condensed Consolidated Financial Data (unaudited)
(dollars in thousands, except per share data)Three months ended
September 30,
2024		June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023
Revenue and Expense Data
Interest income$117,347 $117,032 $115,417 $115,909 $112,380 
Interest expense34,736 35,035 32,681 29,292 24,257 
Net interest income82,611 81,997 82,736 86,617 88,123 
Provision for credit losses220 405 4,305 5,990 4,155 
Noninterest income:
Service charges and fees12,782 12,796 12,637 12,848 13,075 
(Loss) gain on sale or exchange of investment securities2 (45)— (120)— 
Other income3,711 3,115 3,134 3,312 2,909 
Total noninterest income16,495 15,866 15,771 16,040 15,984 
Noninterest expense:
Salaries and benefits35,550 35,401 34,304 34,055 34,463 
Occupancy and equipment5,565 5,393 5,307 5,358 5,451 
Data processing and network6,970 7,081 6,768 6,880 6,852 
Other noninterest expense11,402 10,464 10,125 13,974 11,112 
Total noninterest expense59,487 58,339 56,504 60,267 57,878 
Total income before taxes39,399 39,119 37,698 36,400 42,074 
Provision for income taxes10,348 10,085 9,949 10,325 11,484 
Net income$29,051 $29,034 $27,749 $26,075 $30,590 
Share Data
Basic earnings per share$0.88 $0.88 $0.83 $0.78 $0.92 
Diluted earnings per share$0.88 $0.87 $0.83 $0.78 $0.92 
Dividends per share$0.33 $0.33 $0.33 $0.30 $0.30 
Book value per common share$37.55 $35.62 $35.06 $34.86 $32.18 
Tangible book value per common share (1)$28.09 $26.13 $25.60 $25.39 $22.67 
Shares outstanding33,000,508 32,989,327 33,168,770 33,268,102 33,263,324 
Weighted average shares32,992,855 33,121,271 33,245,377 33,266,959 33,262,798 
Weighted average diluted shares33,136,858 33,243,955 33,370,118 33,351,737 33,319,291 
Credit Quality
Allowance for credit losses to gross loans1.85 %1.83 %1.83 %1.79 %1.73 %
Loans past due 30 days or more$37,888 $30,372 $16,474 $19,415 $8,072 
Total nonperforming loans$41,636 $32,774 $34,242 $31,891 $29,799 
Total nonperforming assets$44,400 $35,267 $36,735 $34,595 $32,651 
Loans charged-off$444 $1,610 $1,275 $749 $5,357 
Loans recovered$367 $398 $132 $419 $720 
Selected Financial Ratios
Return on average total assets1.20 %1.19 %1.13 %1.05 %1.23 %
Return on average equity9.52 %9.99 %9.50 %9.43 %10.91 %
Average yield on loans5.83 %5.82 %5.72 %5.64 %5.52 %
Average yield on interest-earning assets5.26 %5.24 %5.13 %5.09 %4.94 %
Average rate on interest-bearing deposits2.23 %2.14 %1.83 %1.62 %1.36 %
Average cost of total deposits1.52 %1.45 %1.21 %1.05 %0.86 %
Average cost of total deposits and other borrowings1.59 %1.59 %1.47 %1.28 %1.05 %
Average rate on borrowings & subordinated debt5.83 %5.65 %5.35 %5.26 %4.96 %
Average rate on interest-bearing liabilities2.40 %2.39 %2.24 %2.01 %1.71 %
Net interest margin (fully tax-equivalent) (1)3.71 %3.68 %3.68 %3.81 %3.88 %
Loans to deposits83.16 %83.76 %85.14 %86.73 %83.76 %
Efficiency ratio60.02 %59.61 %57.36 %58.71 %55.59 %
Supplemental Loan Interest Income Data
Discount accretion on acquired loans$1,018 $850 $1,332 $1,459 $1,324 
All other loan interest income (1)$97,067 $97,379 $95,153 $94,382 $90,383 
Total loan interest income (1)$98,085 $98,229 $96,485 $95,841 $91,707 

(1) Non-GAAP measure

14

TriCo Bancshares—Condensed Consolidated Financial Data (unaudited)
(dollars in thousands, except per share data)
Balance Sheet DataSeptember 30,
2024		June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023
Cash and due from banks$320,114 $206,558 $82,836 $98,701 $111,099 
Securities, available for sale, net1,981,960 1,946,167 2,076,494 2,155,138 2,176,854 
Securities, held to maturity, net117,259 122,673 127,811 133,494 139,058 
Restricted equity securities17,250 17,250 17,250 17,250 17,250 
Loans held for sale1,995 474 1,346 458 644 
Loans:
Commercial real estate4,487,524 4,461,111 4,443,768 4,394,802 4,367,445 
Consumer1,283,963 1,300,727 1,303,757 1,313,268 1,288,810 
Commercial and industrial484,763 548,625 549,780 586,455 599,757 
Construction276,095 283,374 348,981 347,198 320,963 
Agriculture production144,123 140,239 145,159 144,497 123,472 
Leases7,423 8,450 9,250 8,250 8,219 
Total loans, gross6,683,891 6,742,526 6,800,695 6,794,470 6,708,666 
Allowance for credit losses(123,760)(123,517)(124,394)(121,522)(115,812)
Total loans, net6,560,131 6,619,009 6,676,301 6,672,948 6,592,854 
Premises and equipment70,423 70,621 71,001 71,347 71,760 
Cash value of life insurance139,312 138,525 137,695 136,892 136,016 
Accrued interest receivable33,061 35,527 35,783 36,768 34,595 
Goodwill304,442 304,442 304,442 304,442 304,442 
Other intangible assets7,462 8,492 9,522 10,552 11,768 
Operating leases, right-of-use24,716 25,113 26,240 26,133 27,363 
Other assets245,765 246,548 247,046 245,966 273,303 
Total assets$9,823,890 $9,741,399 $9,813,767 $9,910,089 $9,897,006 
Deposits:
Noninterest-bearing demand deposits$2,547,736 $2,557,063 $2,600,448 $2,722,689 $2,857,512 
Interest-bearing demand deposits1,708,726 1,791,466 1,742,875 1,731,814 1,746,882 
Savings deposits2,690,045 2,667,006 2,672,537 2,682,068 2,816,816 
Time certificates1,090,584 1,034,695 971,798 697,467 588,433 
Total deposits8,037,091 8,050,230 7,987,658 7,834,038 8,009,643 
Accrued interest payable11,664 12,018 10,224 8,445 6,688 
Operating lease liability26,668 27,122 28,299 28,261 29,527 
Other liabilities141,521 128,063 131,006 145,982 141,692 
Other borrowings266,767 247,773 392,409 632,582 537,975 
Junior subordinated debt101,164 101,143 101,120 101,099 101,080 
Total liabilities8,584,875 8,566,349 8,650,716 8,750,407 8,826,605 
Common stock693,176 691,878 696,464 697,349 696,369 
Retained earnings662,816 644,687 630,954 615,502 599,448 
Accumulated other comprehensive loss, net of tax(116,977)(161,515)(164,367)(153,169)(225,416)
Total shareholders’ equity$1,239,015 $1,175,050 $1,163,051 $1,159,682 $1,070,401 
Quarterly Average Balance Data
Average loans$6,690,326 $6,792,303 $6,785,840 $6,746,153 $6,597,400 
Average interest-earning assets$8,892,223 $9,001,674 $9,066,537 $9,064,483 $9,053,389 
Average total assets$9,666,979 $9,782,228 $9,855,797 $9,879,355 $9,874,240 
Average deposits$8,020,936 $8,024,441 $7,821,044 $7,990,993 $8,043,101 
Average borrowings and subordinated debt$276,418 $426,732 $685,802 $617,046 $550,344 
Average total equity$1,214,510 $1,169,324 $1,174,592 $1,097,431 $1,112,404 
Capital Ratio Data
Total risk-based capital ratio15.6 %15.2 %15.0 %14.7 %14.5 %
Tier 1 capital ratio13.8 %13.4 %13.2 %12.9 %12.7 %
Tier 1 common equity ratio13.1 %12.7 %12.5 %12.2 %12.0 %
Tier 1 leverage ratio11.6 %11.2 %11.0 %10.7 %10.6 %
Tangible capital ratio (1)9.7 %9.1 %8.9 %8.8 %7.9 %

(1) Non-GAAP measure

15

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 endedNine months ended
(dollars in thousands)September 30,
2024		June 30,
2024		September 30,
2023		September 30,
2024		September 30,
2023
Net interest margin
Acquired loans discount accretion, net:
Amount (included in interest income)$1,018$850$1,324$3,200$4,192
Effect on average loan yield0.06 %0.05 %0.08 %0.06 %0.09 %
Effect on net interest margin (FTE)0.05 %0.04 %0.06 %0.05 %0.06 %
Net interest margin (FTE)3.71 %3.68 %3.88 %3.69 %4.01 %
Net interest margin less effect of acquired loan discount accretion (Non-GAAP)3.66 %3.64 %3.82 %3.64 %3.95 %

Three months endedNine months ended
(dollars in thousands)September 30,
2024		June 30,
2024		September 30,
2023		September 30,
2024		September 30,
2023
Pre-tax pre-provision return on average assets or equity
Net income (GAAP)$29,051$29,034$30,590$85,834$91,315
Exclude provision for income taxes10,34810,08511,48430,38233,190
Exclude provision for credit losses2204054,1554,93018,000
Net income before income tax and provision expense (Non-GAAP)$39,619$39,524$46,229$121,146$142,505
Average assets (GAAP)$9,666,979$9,782,228$9,874,240$9,767,965$9,867,099
Average equity (GAAP)$1,214,510$1,169,324$1,112,404$1,186,245$1,104,122
Return on average assets (GAAP) (annualized)1.20 %1.19 %1.23 %1.17 %1.24 %
Pre-tax pre-provision return on average assets (Non-GAAP) (annualized)1.63 %1.63 %1.86 %1.66 %1.93 %
Return on average equity (GAAP) (annualized)9.52 %9.99 %10.91 %9.67 %11.06 %
Pre-tax pre-provision return on average equity (Non-GAAP) (annualized)12.98 %13.59 %16.49 %13.64 %17.26 %


16

Three months endedNine months ended
(dollars in thousands)September 30,
2024		June 30,
2024		September 30,
2023		September 30,
2024		September 30,
2023
Return on tangible common equity
Average total shareholders' equity$1,214,510$1,169,324$1,112,404$1,186,245$1,104,122
Exclude average goodwill304,442304,442304,442304,442304,442
Exclude average other intangibles8,0939,00712,5639,09814,219
Average tangible common equity (Non-GAAP)$901,975$855,875$795,399$872,705$785,461
Net income (GAAP)$29,051$29,034$30,590$85,834$91,315
Exclude amortization of intangible assets, net of tax effect7257251,1202,1753,453
Tangible net income available to common shareholders (Non-GAAP)$29,776$29,759$31,710$88,009$94,768
Return on average equity (GAAP) (annualized)9.52 %9.99 %10.91 %9.67 %11.06 %
Return on average tangible common equity (Non-GAAP)13.13 %13.98 %15.82 %13.47 %16.13 %
Three months ended
(dollars in thousands)September 30,
2024		June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023
Tangible shareholders' equity to tangible assets
Shareholders' equity (GAAP)$1,239,015$1,175,050$1,163,051$1,159,682$1,070,401
Exclude goodwill and other intangible assets, net311,904312,934313,964314,994316,210
Tangible shareholders' equity (Non-GAAP)$927,111$862,116$849,087$844,688$754,191
Total assets (GAAP)$9,823,890$9,741,399$9,813,767$9,910,089$9,897,006
Exclude goodwill and other intangible assets, net311,904312,934313,964314,994316,210
Total tangible assets (Non-GAAP)$9,511,986$9,428,465$9,499,803$9,595,095$9,580,796
Shareholders' equity to total assets (GAAP)12.61 %12.06 %11.85 %11.70 %10.82 %
Tangible shareholders' equity to tangible assets (Non-GAAP)9.75 %9.14 %8.94 %8.80 %7.87 %

Three months ended
(dollars in thousands)September 30,
2024		June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023
Tangible common shareholders' equity per share
Tangible shareholders' equity (Non-GAAP)$927,111$862,116$849,087$844,688$754,191
Common shares outstanding at end of period33,000,508 32,989,327 33,168,770 33,268,102 33,263,324 
Common shareholders' equity (book value) per share (GAAP)$37.55$35.62$35.06$34.86$32.18
Tangible common shareholders' equity (tangible book value) per share (Non-GAAP)$28.09$26.13$25.60$25.39$22.67




17
tcbkq3-2024investordeck2
Investor Presentation | Third Quarter 2024 Investor Presentation Third Quarter 2024 Richard P. Smith, President & Chief Executive Officer Daniel K. Bailey, EVP & Chief Banking Officer John S. Fleshood, EVP & Chief Operating Officer Peter G. Wiese, EVP & Chief Financial Officer EXHIBIT 99.2

 
Investor Presentation | Third Quarter 2024 2 Safe Harbor Statement The statements contained herein that are not historical facts are forward-looking statements based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company. 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: the conditions of the United States economy in general and the strength of the local economies in which we conduct operations; the impact of any future federal government shutdown and uncertainty regarding the federal government’s debt limit or changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; the impacts of inflation, interest rate, market and monetary fluctuations on the Company's business condition and financial operating results; the impact of changes in financial services industry policies, laws and regulations; regulatory restrictions affecting our ability to successfully market and price our products to consumers; 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 that may or may not be caused by climate change and their effects on the Company's customers and the economic and business environments in which the Company operates; the impact of a slowing U.S. economy, decreases in housing and commercial real estate prices, and potentially increased unemployment on the performance of our loan portfolio, 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; adverse developments with respect to U.S. or global economic conditions and other uncertainties, including the impact of supply chain disruptions, commodities prices, inflationary pressures and labor shortages on the economic recovery and our business; the impacts of international hostilities, wars, terrorism or geopolitical events; adverse developments in the financial services industry generally such as the recent bank failures and any related impact on depositor behavior or investor sentiment; risks related to the sufficiency of liquidity; 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 regulatory and financial impacts associated with exceeding $10 billion in total assets; the negative impact on our reputation and profitability in the event customers experience economic harm or in the event that regulatory violations are identified; the ability to execute our business plan in new markets; the future operating or financial performance of the Company, including our outlook for future growth and changes in the level and direction of our nonperforming assets and charge-offs; the appropriateness of the allowance for credit losses, including the assumptions made under our current expected credit losses model; any deterioration in values of California real estate, both residential and commercial; the effectiveness of the Company's asset management activities managing the mix of earning assets and in improving, resolving or liquidating lower-quality assets; the effect of changes in the financial performance and/or condition of our borrowers; changes in accounting standards and practices; changes in consumer spending, borrowing and savings habits; our ability to attract and maintain deposits and other sources of liquidity; the effects of changes in the level or cost of checking or savings account deposits on our funding costs and net interest margin; 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; the challenges of attracting, integrating and retaining key employees; the vulnerability of the Company's operational or security systems or infrastructure, the systems of third-party vendors or other service providers with whom the Company contracts, and the Company's 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; the impact of the 2023 cyber security ransomware incident, including the pending litigation, on our operations and reputation; 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 transition from the LIBOR to new interest rate benchmarks; the emergence or continuation of widespread health emergencies or pandemics; the Company’s 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 Annual Report on Form 10-K for the year ended December 31, 2023, which has been filed with the Securities and Exchange Commission (the “SEC”) and all subsequent filings with the SEC under Sections 13(a), 13(c), 14, and 15(d) of the Securities Act of 1934, as amended. Such filings are also available in the “Investor Relations” section of our website, https://www.tcbk.com/investor-relations and in other documents we file with the SEC. Annualized, pro forma, projections and estimates are not forecasts and may not reflect actual results. We undertake no obligation (and expressly disclaim any such obligation) to update or alter our forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

 
Investor Presentation | Third Quarter 2024 3 Tri Counties Bank Awards S&P Global Market Intelligence Top Community Bank with $3 billion to $10 billion in assets 2022, 2023 Grass Valley Union Best of Nevada County Awarded annually 2011-2023 Forbes Magazine America’s Best Banks 2024 Sacramento Business Journal Best Places to Work 2024 Sacramento Rainbow Chamber of Commerce Corporate Advocate of the Year 2024 Cen Cal Business Finance Group SBA-504 Lender of the Year 2023 Chico Enterprise Record Readers’ Choice Best Bank Awarded annually 2019-2024 Gustine Press-Standard Best Bank 2023 Style Magazine Reader's Choice – Roseville, Granite Bay & Rocklin Awarded annually 2011-2024 California Black Chamber of Commerce Top Partner Award 2023 Chico News & Review Best Bank Awarded annually 2008- 2019, then 2022 and 2023 Record Searchlight Best Bank in the North State 2015, 2016, 2018, 2022, 2023

 
Investor Presentation | Third Quarter 2024 4 Executive Team Greg Gehlmann SVP General Counsel Craig Carney EVP Chief Credit Officer Rick Smith President & Chief Executive Officer Dan Bailey EVP Chief Banking Officer John Fleshood EVP Chief Operating Officer Angela Rudd SVP Chief Risk Officer Judi Giem SVP Chief Human Resources Officer Jason Levingston SVP Chief Information Officer Peter Wiese EVP Chief Financial Officer Bret Funderburgh SVP Deputy Chief Credit Officer Scott Robertson SVP Chief Community Banking Officer Scott Myers SVP Head of Wholesale Banking

 
Investor Presentation | Third Quarter 2024 Agenda 5  Most Recent Quarter Recap  Company Overview  Lending Overview  Deposit Overview  Financials

 
Investor Presentation | Third Quarter 2024 6 Most Recent Quarter Highlights  Pre-tax pre-provision ROAA and ROAE were 1.20% and 9.52%, respectively, for the quarter ended September 30, 2024, and 1.23% and 10.91%, respectively, for the same quarter in the prior year.  Our efficiency ratio was 60.0% for the quarter ended September 30, 2024, compared to 59.6% for the trailing quarter end and 55.6% for the quarter ended September 30, 2023. Operating Leverage and Profitability  Net interest margin (FTE) of 3.71% in the quarter compared favorably to 3.68% in the prior quarter.  Average yield on earning assets (FTE) of 5.26% was 2 basis points higher than the 5.24% in the trailing quarter, and 32 basis points higher than 4.94% in the quarter ended September 30, 2023.  Cost of interest-bearing liabilities for the quarter was nearly level at 2.40% compared to 2.39% the prior quarter.  The Company's total cost of deposits have increased 148 basis points since FOMC rate actions began in March 2022, which translates to a cycle-to-date deposit beta of 31.2% Net Interest Income and Margin  Deposit balances decreased $13.1 million or 0.7% (annualized) from the trailing quarter  Loan to deposit ratio decreased to 83.2% at September 30, 2024, compared to 83.8% in the trailing quarter  Investment security balances increased $30.4 million or 5.8% on an annualized basis  Other borrowings increased by $19.0 million to $266.8 million as compared to the trailing quarter; however, on balance sheet liquidity increased by $113.6 million in the quarter, to $320.1 million as of September 30, 2024. Balance Sheet Management  Readily available and unused funding sources, which total approximately $4.1 billion and represent 51% of total deposits and 163% of total estimated uninsured deposits.  No reliance on brokered deposits or FRB borrowing facilities during 2024 or 2023 Liquidity  The allowance for credit losses to total loans was 1.85% as of September 30, 2024, as compared to the trailing quarter at 1.83%, as both the level of provisioning and net charge-offs during the quarter were negligible.  With non-performing assets to total assets (not adjusted for guarantees) at 0.45% as of September 30, 2024, and the allowance for credit losses representing nearly 3.0x of non-performing loans, we believe the overall credit risk profile remains historically low. Credit Quality  Average non-interest-bearing deposits comprised 31.7% of average total deposits for the quarter.  Approximately a 50/50 split between consumer and business deposit dollars reflects a diversified client base.Diverse Deposit Base  All regulatory capital ratios continue to climb, with four successive quarters of increases  Maintained the 2024 quarterly dividend of $0.33 or $1.32 annually as compared to the $1.20 paid in 2023  Approximately 865,000 shares remain authorized for repurchase  Tangible capital ratio of 9.7% at September 30, 2024, an increase from 7.9% at September 2023, through the combined impacts of retained earnings and reduction in accumulated other comprehensive loss. Capital Strategies

 
Investor Presentation | Third Quarter 2024 7 Company Overview Nasdaq: TCBK Headquarters: Chico, California Stock Price*: $42.65 Market Cap.: $1.41 Billion Asset Size: $9.82 Billion Loans: $6.68 Billion Deposits: $8.04 Billion Bank Branches: 68 ATMs: 84 Bank ATMs, with access to ~ 40,000 in network Market Area: TriCo currently serves 31 counties throughout California * As of close of business September 30, 2024

 
Investor Presentation | Third Quarter 2024 8 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Net Income ($MM) $23.4 $22.9 $16.1 $7.4 $17.6 $23.6 $33.6 $28.4 $27.4 $28.2 $20.4 $31.4 $37.3 $36.3 $35.8 $24.9 $30.6 $26.1 $27.7 $29.0 $29.1 Qtrly Diluted EPS $0.76 $0.75 $0.53 $0.25 $0.59 $0.79 $1.13 $0.95 $0.92 $0.94 $0.67 $0.93 $1.12 $1.09 $1.07 $0.75 $0.92 $0.78 $0.83 $0.87 $0.88 $0.00 $0.40 $0.80 $1.20 $0 $4 $8 $12 $16 $20 $24 $28 $32 $36 $40 Q tr ly E P S ( di lu te d) E a rn in gs ( in M ill io n s) Positive Earnings Track Record March 2022 Acquired Valley Republic Bancorp ($1.4B assets) 2020 Elevated ACL Provisioning Associated with COVID Related Risks

 
Investor Presentation | Third Quarter 2024 9 27% 27% 41% 25% 29% 34% 38% 2018 2019 2020 2021 2022 2023 2024 $0.60 $0.74 $0.53 $1.13 $0.67 $1.07 $0.83 $0.65 $0.75 $0.25 $0.95 $0.93 $0.75 $0.87 $0.53 $0.76 $0.59 $0.92 $1.12 $0.92 $0.88 $0.75 $0.79 $0.94 $1.09 $0.78 $2.54 $3.00 $2.16 $3.94 $3.83 $3.52 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 2018 2019 2020 2021 2022 2023 2024 Q1 Q2 Q3 Q4 10.75% 10.49% 7.18% 12.10% 11.67% 10.65% 9.67% 2018 2019 2020 2021 2022 2023 2024 $0.17 $0.19 $0.22 $0.25 $0.25 $0.30 $0.33 $0.17 $0.19 $0.22 $0.25 $0.25 $0.30 $0.33 $0.17 $0.22 $0.22 $0.25 $0.30 $0.30 $0.33 $0.19 $0.22 $0.22 $0.25 $0.30 $0.30 $0.70 $0.82 $0.88 $1.00 $1.10 $1.20 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 2018 2019 2020 2021 2022 2023 2024 Q1 Q2 Q3 Q4 Shareholder Returns Dividends per Share: 10% CAGR* Dividends as % of Earnings Return on Avg. Shareholder Equity Diluted EPS *Compound Annual Growth Rate, 5 years

 
Investor Presentation | Third Quarter 2024 10 Asset Growth Organic Growth and Disciplined Acquisitions • Asset Dollars in Billions 10 yrs.5 yrs. 13.4%9.0% CAGR, Assets Trailing 10 years Trailing 5 quarters

 
Investor Presentation | Third Quarter 2024 Deposits 11

 
Investor Presentation | Third Quarter 2024 12 Non Interest- bearing Demand Deposits, 29.7% Interest-bearing Demand & Savings Deposits, 51.2% Time Deposits, 12.7% Borrowings & Subordinated Debt, 4.3% Other liabilities, 2.1% Liability Mix: Strength in Funding Total Deposits = $8.04 billion 95.6% of Funding Liabilities Liability Mix 09/30/2024  Peer group consists of 99 closest peers in terms of total deposits, range $5.1 to 11.1 Billion; source: BankRegData.com  Net Loans includes LHFS and Allowance for Credit Loss; Core Deposits = Total Deposits less CDs > 250k and Brokered Deposits 6 6 .9 6 6 .0 6 6 .4 6 9 .1 7 2 .1 7 6 .5 7 9 .5 8 0 .4 8 4 .0 8 7 .7 8 7 .7 8 6 .6 8 6 .5 0 20 40 60 80 100 120 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2024 Q1 2024 Q2 2024 Q3 Loans to Core Deposits (%) TCBK Peers 4 0 .7 4 0 .4 4 1 .1 4 1 .2 4 2 .5 4 2 .0 4 0 .3 3 8 .0 3 5 .7 3 4 .8 3 2 .6 3 1 .8 3 1 .7 0 10 20 30 40 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2024 Q1 2024 Q2 2024 Q3 Non Interest-bearing Deposits as % of Total Deposits TCBK Peers

 
Investor Presentation | Third Quarter 2024 13 Deposits: Strength in Cost of Funds • Balances presented in millions, end of period $327 $298 $349 $327 $304 $224 $346 $492 $588 $697 $972 $1,035 $1,091 $3,967 $4,090 $4,783 $4,825 $4,674 $4,603 $4,443 $4,530 $4,564 $4,414 $4,415 $4,458 $4,399 $2,943 $2,980 $3,583 $3,604 $3,678 $3,502 $3,237 $3,073 $2,858 $2,723 $2,600 $2,557 $2,548 $7,237 $7,367 $8,714 $8,757 $8,656 $8,329 $8,026 $8,095 $8,010 $7,834 $7,988 $8,050 $8,037 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24

 
Investor Presentation | Third Quarter 2024 14 481 456 434 447 1,453 1,496 733 407 253 348 Consumer Business Prior Quarter, Total # 35,247 # 199,311 Deposits: Demand & Savings Deposit Mix [1] Excludes time deposits, bank owned operational deposits and public funds. Balance Tier, $ millions [1]Total Demand & Savings ($ millions-exterior, # of accounts-interior) Business $3,271 Consumer $3,238

 
Investor Presentation | Third Quarter 2024 15 $575 $358 $80 $28 4.40% 4.30% 3.99% 1.78% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% $0 $100 $200 $300 $400 $500 $600 <3 Months 3-6 Months 6-12 Months >12 Months Current Balance Wtd Avg Rate CDs by Remaining Maturity $203 $198 $284 $426 $530 $630 $904 $979 $1,041 0.19% 0.47% 1.68% 2.76% 3.22% 3.63% 4.15% 4.31% 4.26% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% $0.00 $200.00 $400.00 $600.00 $800.00 $1,000.00 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q3-2024 Current Balance Weighted Average Rate CD Growth Deposits: CD Balance and Maturity Composition • Note: Excludes CDARS * CD special as of September 30, 2024, subject to change

 
Investor Presentation | Third Quarter 2024 16 Liquidity [1] $ millions, as of 9/30/2024, cash based upon total held at or in transit with FRB [2] Based upon estimated uninsured deposits reported in Call Report schedule RC-O includes demand and time deposits [3] Peer group consists of closest 99 peers in terms of assets, sourced from BankRegData.com $4.1 Billion 163% of estimated uninsured deposits In addition to a strong deposit base, Tri Counties Bank maintains a variety of easily accessible funding sources. $2,508 $1,313 $275 Liquidity Sources [1] Total Borrow Capacity Unpledged Securities AFS Cash 71.2 70.3 66.3 66.3 66.5 67.6 71.2 68.9 70.1 69.9 69.5 69.3 68.7 63.7 62.8 62.1 62.7 62.7 63.7 68.3 68.4 68.5 68.0 68.8 68.2 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Insured Deposits as % of Total Deposits [2][3] TCBK Peers 19.0 17.6 18.6 19.8 21.8 22.8 25.3 25.3 25.3 30.7 33.6 36.5 37.6 35.7 34.9 37.1 36.3 35.7 39.6 50.4 56.3 55.7 55.8 54.9 52.9 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Pledged Securities as % of Total Securities [3] TCBK Peers

 
Investor Presentation | Third Quarter 2024 Loans and Credit Quality 1717

 
Investor Presentation | Third Quarter 2024 18 Loan Portfolio and Yield  Acquired VRB Loans of $795MM upon 3/25/2022 with a WAR of 4.31%.  Yield scaled to range of 3% to 6% in the visual  End of period balances are presented net of fees and include LHFS. Yields based on average balance and annualized interest income for quarterly periods. $2,283 $2,523 $2,760 $3,015 $4,022 $4,307 $4,763 $4,917 $6,450 $6,795 $6,709 $6,795 $6,802 $6,743 $6,686 5.62% 5.52% 5.32% 5.16% 5.24% 5.44% 5.02% 4.97% 4.86% 5.44% 5.51% 5.64% 5.72% 5.82% 5.83% 3.00% 4.00% 5.00% 6.00% $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q3-2024 Total Loans Loan Yield Trailing 10 years Trailing 5 quarters

 
Investor Presentation | Third Quarter 2024 19 $464 $285 $303 $412 $396 $473 $446 $250 $159 $170 $247 $193 $114 $121 $146 -$241 -$192 -$243 -$250 -$225 -$205 -$270 -$110 -$92 -$107 -$83 -$110 -$83 -$137 -$113 -$59 $6 -$33 -$47 $4 $33 $42 -$4 -$94 $36 $22 -$24 -$41 -$86 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q3-2024 Origination Payoffs Balance Change net of Originations and Payoffs Gross Production vs. Payoff  Outstanding Principal in Millions, excludes PPP and Credit Card balances  Includes Q1 2021 increase of $98MM and Q4 2020 increase of $40MM in Jumbo Mortgage pool purchases  $800MM in outstanding at close of Q1-2022 related to VRB Acquisitions ($795MM at acquisition) excluded from the chart TCBK originated nearly $1.5 billion in 2021, while facing headwinds of an increased $372 million in payoffs during 2021. Originations and net loan growth in 2022 were supportive of the positive mix shift in earning assets and facilitated both NII and NIM expansion. Slower pace of originations commensurate with market rate changes, liquidity management, and NIM preservation.

 
Investor Presentation | Third Quarter 2024 20 $2,252 $2,172 $1,020 $959 $947 $957 $868 $871 $485 $592 $355 $353 $276 $321 $412 $402 $63 $65 3Q-2024 3Q-2023 3Q-2024 3Q-2023 3Q-2024 3Q-2023 3Q-2024 3Q-2023 3Q-2024 3Q-2023 3Q-2024 3Q-2023 3Q-2024 3Q-2023 3Q-2024 3Q-2023 3Q-2024 3Q-2023 C R E N o n - O w n e r O cc u p ie d M u lti fa m ily C R E -O w n e r O cc u p ie d S F R 1 -4 T e rm C o m m e rc ia l & I nd u st ri a l S F R H E L O C a n d Ju n io r L ie n s C o n st ru ct io n A g ric u ltu re & F a rm la n d A u to & O th e r Diversified Loan Portfolio  Dollars in millions, Net Book Value at period end, excludes LHFS;  Auto & other includes Leases; Commercial & Industrial includes Municipality Loans. CRE Non-Owner Occupied 34% CRE-Owner Occupied 14% Multifamily 15% SFR 1-4 Term 13% Commercial & Industrial 7% SFR HELOC and Junior Liens 6% Construction 4% Agriculture & Farmland 6% Auto & Other 1%

 
Investor Presentation | Third Quarter 2024 21 Office RE Collateral Graph circle size represent total loan Commitments in the Region; regional assignment based upon ZIP code of collateral California Office Secured by Region Regions by Collateral Code Regions by Occupancy Type

 
Investor Presentation | Third Quarter 2024 22 69% 54% 78% 64% 79% 73% 43% 50% 30% 43% 22% 36% 21% 24% 56% 43% 1% 3% 0% 0% 0% 3% 1% 7% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Retail Building Office Building Hotel/Motel Light Industrial Mixed Use - Retail Other Multifamily CRE Owner Occupied <= 60% > 60% - 75% > 75% CRE Collateral Values Distribution by LTV (1) LTV Range (1) LTV as of most recent origination or renewal date. CRE Non-Owner Occupied by Collateral Type

 
Investor Presentation | Third Quarter 2024 23 $2,279 $2,193 $1,025 $964 $353 $350 $468 $596 $954 $964 $873 $872 $279 $325 $416 $407 $59 $63 $158 $174 $60 $65 $663 $659 $732 $647 $66 $60 $266 $367 $158 $134 $8 $8 3Q-2024 3Q-2023 3Q-2024 3Q-2023 3Q-2024 3Q-2023 3Q-2024 3Q-2023 3Q-2024 3Q-2023 3Q-2024 3Q-2023 3Q-2024 3Q-2023 3Q-2024 3Q-2023 3Q-2024 3Q-2023 CRE Non-Owner Occupied Multifamily SFR HELOC and Junior Liens Commercial & Industrial CRE-Owner Occupied SFR 1-4 Term Construction Agriculture & Farmland Auto & Other Outstanding Principal ($MM) Unfunded Commitment ($MM) Unfunded Loan Commitments HELOCs – by vintage, with weighted avg. coupon (9.17% total WAC)  Outstanding Principal and Commitments exclude unearned fees and discounts/premiums, Leases, DDA Overdraft, and Credit Cards 8.20% 8.40% 8.60% 8.80% 9.00% 9.20% 9.40% 9.60% 9.80% 10.00% $0 $25 $50 $75 $100 $125 $150 $175 $200 $225 20242023202220212020201920182017201620152014201320122011<2011 Private Balance (MM) Unfunded (MM) WA Rate 9.51% 9.59% 9.09% 8.87%8.94% 9.02% 9.19% 9.31% 9.42%9.37% 9.21% 8.71%8.77% 9.73% 8.85%

 
Investor Presentation | Third Quarter 2024 24 C&I Utilization • Outstanding Principal excludes unearned fees and discounts/premiums ($ millions)  Utilization has remained stable throughout the rising rate environment  C&I yields are generally tied to changes in the Prime Rate.  Paired with treasury management services, C&I customers will be a continued source of fee income and deposits. C&I Utilization by NAICS Industry: 3Q-2024 $164 $35 $44 $61 $26 $15 $19 $15 $63 $180 $106 $58 $49 $57 $51 $10 $23 $188 48% 25% 43% 56% 32% 23% 66% 40% 25% 0% 5000% 10000% 15000% 20000% Oil & Gas Extraction Construction Finance and Insurance Real Estate Wholesale Healthcare Trans and Warehouse Retail Trade Other (14 Categories) Outstanding (mln) Unfunded (mln) $186 $191 $448 $476 $509 $544 $527 $550 $574 $560 $523 $521 $443 $353 $339 $552 $547 $603 $593 $628 $653 $647 $670 $663 $686 $722 35% 36% 45% 47% 46% 48% 46% 46% 47% 46% 44% 43% 38% 4.97% 4.96% 4.46% 5.12% 6.11% 6.79% 7.31% 7.60% 7.89% 7.88% 8.00% 7.99% 7.69% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 3Q-2021 4Q-2021 1Q-2022 2Q-2022 3Q-2022 4Q-2022 1Q-2023 2Q-2023 3Q-2023 4Q-2023 1Q-2024 2Q-2024 3Q-2024 Outstanding Principal ($MM) Unfunded Commitment Utilization WAR

 
Investor Presentation | Third Quarter 2024 25 $892 $512 $493 $623 $665 $668 $299 8.81% 5.81% 4.40% 4.48% 5.33% 5.39% 5.41% 8.66% 6.89% 6.74% 6.53% 6.50% 6.57% 6.94% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% - 100 200 300 400 500 600 700 800 900 1,000 Monthly (Floating) < 1 Year 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years > 5 Years Adjustable Loans, Principal Outstanding ($MM) Adj Wtd Avg Rate Adj Wtd Avg Rate if Repriced 09/30/2024 Loan Yield Composition  Dollars in millions, excludes PPP as well as unearned fees and accretion/amortization therein.  Wtd Avg Rate (weighted average rate) as of 09/30/2024 and based upon outstanding principal; Next Reprice signifies either the next scheduled reprice date or maturity. 99% of Floating benchmarked to Prime Predominantly benchmarked to 5 Year Treasury 62% Adjustable + Floating Fixed 38% Adjustable 49% Floating 13%

 
Investor Presentation | Third Quarter 2024 26 $3,242 $3,259 $84 ($52) ($15) 6/30/2024 Originations Payoffs Paydowns 9/30/2024 $3,101 ($147) $12 $3,259 $293 9/30/2023 Originations Payoffs Paydowns 9/30/2024 Adjustable Rate Loans  Dollars in millions, principal outstanding, excludes unearned fees; Draws are net of Paydowns in YoY view, Paydowns are net of Draws on existing loans in second quarter  WAR (weighted average rate) based upon outstanding principal, excludes unearned fees 4.80% WAR Scaled to $3,000MM Scaled to $2,500MM 4.80% WAR Year-over-year change Quarter-over-quarter change 5.12% WAR 5.07% WAR 6.73% 5.58% 7.02% 5.66% 5.12% WAR 4.80% 5.07% 5.12% 4.40% 4.60% 4.80% 5.00% 5.20% $2,600 $2,800 $3,000 $3,200 $3,400 Adj Rate Loans WAR

 
Investor Presentation | Third Quarter 2024 27 $2,597 $2,555 $40 ($22) ($60) 6/30/2024 Originations Payoffs Paydowns 9/30/2024 $2,700 $2,555 $176 ($142) ($179) 9/30/2023 Originations Payoffs Paydowns 9/30/2024 Fixed Rate Loans  Dollars in millions, principal outstanding, excludes unearned fees; Paydowns are net of draws on existing loans within period  WAR (weighted average rate) based upon outstanding principal, excludes unearned fees Year-over-year change Quarter-over-quarter change Scaled to $2,400MM Scaled to $2,400MM 4.62% WAR 4.80% WAR 4.80% WAR 4.80% WAR 7.56% 5.90% 6.89% 6.47% Includes principal amortization as well as transfers of loans out of construction 4.62% 4.80% 4.80% 4.40% 4.45% 4.50% 4.55% 4.60% 4.65% 4.70% 4.75% 4.80% $2,400 $2,450 $2,500 $2,550 $2,600 $2,650 $2,700 $2,750 Balance WAR

 
Investor Presentation | Third Quarter 2024 28 ($1,434) ($77) ($2,399) $123,517 $4,154 $123,760 ACL 6/30/2024 Portfolio Growth/Mix Charge Offs & Recoveries Criticized & Classified Reserve Rates ACL 9/30/2024 $115,000 $117,000 $119,000 $121,000 $123,000 $125,000 $127,000 Allowance for Credit Losses Drivers of Change under CECL  Loan portfolio declined $59 million in Q3  C&I declines were the driver of reductions in ACL due to volume  Primarily driven by Qualitative factors CRE concentrations  Gross charge-offs $0.444 million  Gross recoveries $0.367 million 1.83% of Total Loans 1.85% of Total Loans Driven by specific reserve increases of $3.7 million  Excludes gross charge-offs Scaled to reflect $115MM

 
Investor Presentation | Third Quarter 2024 29 Allowance for Credit Losses Allocation of Allowance by Segment

 
Investor Presentation | Third Quarter 2024 30 Risk Grade Migration Zero balance in Doubtful and Loss 82.6%83.6%83.5%85.0%86.0%87.8% 14.1%13.3%13.8%12.1%11.4%8.8% 1.6%1.5%1.6%1.5%1.4%2.4% 1.8%1.6%1.1%1.3%1.2%1.0% 0% 20% 40% 60% 80% 100% 3Q-20242Q-20241Q-20244Q-20233Q-20232Q-2023 Pass Watch Special Mention Substandard

 
Investor Presentation | Third Quarter 2024 31 0.37% 0.38% 0.17% 0.15% 0.21% 0.25% 0.20% 0.40% 0.32% 0.35% 0.37% 0.35% 0.44% 0.60% 0.50% 0.46% 0.34% 0.34% 0.32% 0.37% 0.39% 0.48% 0.53% 0.53% 0.55% 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2024 Q1 2024 Q2 2024 Q3 TCBK Peers 293% 281% 682% 821% 581% 496% 676% 312% 389% 381% 363% 377% 297% 18 1% 19 1% 17 8% 19 9% 21 1% 14 9% 20 4% 22 4% 19 1% 18 9% 17 4% 16 7% 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2024 Q1 2024 Q2 2024 Q3 TCBK Peers  Peer group consists of 99 closest peers in terms of asset size, range $6.2-13.4 Billion, source: BankRegData.com  NPAs as presented are net of guarantees, NPLs as presented are not adjusted for guarantees. Asset Quality  The Bank continues to actively and aggressively address potential credit issues with short resolution timelines.  Over the past three years, both the Bank’s total non-performing assets and coverage ratio have remained better than peers. Non-Performing Assets as a % of Total Assets Coverage Ratio: Allowance as % of Non-Performing Loans

 
Investor Presentation | Third Quarter 2024 Financials 3232

 
Investor Presentation | Third Quarter 2024 33 Net Interest Income (NII) and Margin (NIM)

 
Investor Presentation | Third Quarter 2024 34 Net Interest Income (NII) and Margin (NIM)

 
Investor Presentation | Third Quarter 2024 35 1.24% 1.43% 0.91% 1.43% 1.28% 1.19% 1.17% 2018 2019 2020 2021 2022 2023 2024 1.73% 1.94% 1.83% 1.91% 1.97% 1.87% 1.66% 2018 2019 2020 2021 2022 2023 2024 63.7% 59.7% 58.4% 53.2% 53.0% 55.8% 59.0% 2018 2019 2020 2021 2022 2023 2024 4.30% 4.47% 3.96% 3.58% 3.88% 3.96% 3.69% 2018 2019 2020 2021 2022 2023 2024 Current Operating Metrics Net Interest Margin (FTE) PPNR as % of Average Assets Efficiency Ratio ROAA 2024 values through the 9 months ended 9/30/2024, annualized where applicable

 
Investor Presentation | Third Quarter 2024 36 9.5% 10.6% 9.3% 9.2% 7.6% 8.8% 9.7% 2018 2019 2020 2021 2022 2023 2024 14.4% 15.1% 15.2% 15.4% 14.2% 14.7% 15.6% 2018 2019 2020 2021 2022 2023 2024 12.5% 13.3% 12.9% 13.2% 11.7% 12.2% 13.1% 2018 2019 2020 2021 2022 2023 2024 13.7% 14.4% 14.0% 14.2% 12.4% 12.9% 13.8% 2018 2019 2020 2021 2022 2023 2024 Well Capitalized Tier 1 Capital Ratio Total Risk Based Capital CET1 Ratio Tangible Capital Ratio 2024 values at quarter ended 9/30/2024

 
Investor Presentation | Third Quarter 2024 37 Our Mission Tri Counties Bank exists for just one purpose: to improve the financial success and well-being of our shareholders, customers, communities and employees. Core Values Trust Respect Integrity Communication Opportunity Team Ethos We are one team, aligned, customer-focused and collaborative to achieve next-level performance.