# EDGAR Filing Document

**Accession Number:** 0000356171
**File Stem:** 0000356171-23-000004
**Filing Date:** 2023-1
**Character Count:** 117527
**Document Hash:** 3e05a5d544418d92ebf922d232f42cfd
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000356171-23-000004.hdr.sgml**: 20230125

**ACCESSION NUMBER**: 0000356171-23-000004

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 46

**CONFORMED PERIOD OF REPORT**: 20230125

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230125

**DATE AS OF CHANGE**: 20230125

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** TRICO BANCSHARES /
- **CENTRAL INDEX KEY:** 0000356171
- **STANDARD INDUSTRIAL CLASSIFICATION:** STATE COMMERCIAL BANKS [6022]
- **IRS NUMBER:** 942792841
- **STATE OF INCORPORATION:** CA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-10661
- **FILM NUMBER:** 23552678

**BUSINESS ADDRESS:**
- **STREET 1:** TRICO BANCSHARES
- **STREET 2:** 63 CONSTITUTION DRIVE
- **CITY:** CHICO
- **STATE:** CA
- **ZIP:** 95973
- **BUSINESS PHONE:** 5308980300

**MAIL ADDRESS:**
- **STREET 1:** TRICO BANCSHARES
- **STREET 2:** 63 CONSTITUTION DRIVE
- **CITY:** CHICO
- **STATE:** CA
- **ZIP:** 95973

?xml version="1.0" ? tcbk-20230125

**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):**

**January 25, 2023**

**_______________________**

![tcbk-20230125_g1.jpg](tcbk-20230125_g1.jpg)

**(Exact name of registrant as specified in its charter)**

**_______________________**

---

| | | |
|:---|:---|:---|
| **California** | **0-10661** | **94-2792841** |
| **(State or other jurisdiction of<br>incorporation or organization)** | **(Commission File No.)** | **(I.R.S. Employer<br>Identification No.)** |

---

---

| | | | |
|:---|:---|:---|:---|
| **63 Constitution Drive** | **Chico,** | **California** | **95973** |
| **(Address of principal executive offices)** | **(Address of principal executive offices)** | **(Address of principal executive offices)** | **(Zip Code)** |

---

**Registrant's telephone number, including area code: (530) 898-0300**

**_____________________**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading<br>Symbol(s)** | **Name of each exchange<br>on which registered** |
| **Common Stock, no par value** | **TCBK** | **Nasdaq** |

---

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&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition**

On January 25, 2023, TriCo Bancshares (the "Company") announced its unaudited financial results for the three and twelve month periods ended December 31, 2022. 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&nbsp;&nbsp;&nbsp;&nbsp;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&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits**

(d) Exhibits

<u>[99.1](tcbk-202212318xk.htm)</u>&nbsp;&nbsp;&nbsp;&nbsp;Press release dated January 25, 2023

<u>[99.2](a2022q4investorpresentat.htm)</u> &nbsp;&nbsp;&nbsp;&nbsp;Investor Presentation

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: January 25, 2023 | /s/ Peter G. Wiese |
| | Peter G. Wiese, Executive Vice President and Chief Financial Officer |
| | (Principal Financial and Accounting Officer) |

---

## Exhibit 99.1

**Exhibit 99.1**

![capture_servicewsolution.jpg](capture_servicewsolution.jpg)

---

| |
|:---|
| **Contact: Peter G. Wiese, EVP & CFO, (530) 898-0300** |
| **For Immediate Release** |

---

**TRICO BANCSHARES ANNOUNCES FOURTH QUARTER 2022 RESULTS**

**<u>Notable Items for Fourth Quarter 2022</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Net interest margin increased by 0.32% to 4.34% from the third quarter of 2022 and, excluding the benefit from PPP and acquired loan discount accretion, increased by 0.29% to 4.27%** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• The average cost of total deposits grew to 0.10% for the quarter as compared to 0.04% in the trailing quarter and the same quarter of the prior year** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Organic loan growth was $136.2 million for the quarter or 8.6% annualized and $760.4 million for the year or 15.5%** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Deposit balances declined by $326.8 million for the quarter or 15.1% and $253.6 million for the year or 3.4%, which led to the Company remaining under $10.0 billion in total assets as of year end**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Inclusive of $2.1 million in retirement benefit expenses recorded in the current quarter, pre-tax pre-provision net revenue remained flat at $55.3 million compared to the trailing quarter, and increased by $15.7 million compared to $39.6 million in the same quarter of the prior year**

*"We are pleased with the record performance and growth that the 2022 year represents for TriCo, and our capital ratios, loss reserves, and sources of liquidity allow us to remain confident that we will continue to thrive through whatever challenges 2023 may bring," noted Rick Smith, President and Chief Executive Officer. Peter Wiese, EVP and Chief Financial Officer added, "Through 2022, TriCo maintained its best in class Betas for the cost of total deposits. Looking forward, the pace of margin and net interest income growth may slow through the course of 2023. Despite the potential challenges ahead, it is appropriate to celebrate our team driven success and to thank the many stakeholders whom continue to make that success possible."* 

CHICO, CA – (January 25, 2023) – TriCo Bancshares (NASDAQ: TCBK) (the "Company"), parent company of Tri Counties Bank, today announced net income of $36,343,000 for the quarter ended December 31, 2022, compared to $37,338,000 during the trailing quarter ended September 30, 2022, and $28,222,000 during the quarter ended December 31, 2021. Diluted earnings per share were $1.09 for the fourth quarter of 2022, compared to $1.12 for the third quarter of 2022 and $0.94 during the fourth quarter of 2021.

**<u>Financial Highlights</u>**

Performance highlights for the Company as of or for the three and twelve months ended December 31, 2022, included the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For the three and twelve months ended December 31, 2022, the Company's return on average assets was 1.45% and 1.28%, while the return on average equity was 14.19% and 11.67%, respectively. The twelve month ratio was impacted by merger related expenses of $6,253,000 during 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Organic loan growth, excluding PPP and acquired loans, totaled $136.5 million (8.6% annualized) for the current quarter and $841.4 million (17.3% annualized) for the trailing twelve-month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As of December 31, 2022, the Company reported total loans, total assets and total deposits of $6.5 billion, $9.9 billion and $8.3 billion, respectively. The combination of organic loan growth and deposit contraction during the quarter resulted in the loan to deposit ratio increasing to 77.4% as of December 31, 2022, as compared to 73.0% as of the trailing quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The quarterly average rate of interest paid on deposits, including non-interest-bearing deposits, of 0.10% represents an increase of 6 basis points from both the trailing quarter and same quarter of the prior year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Noninterest income related to service charges and fees was $12.3 million for the three month period ended December 31, 2022, an increase of 9.5% when compared to the same period in 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The provision for credit losses for loans and debt securities was approximately $4.2 million during the quarter ended December 31, 2022, as compared to a provision expense of $3.8 million during the trailing quarter ended September 30, 2022, and a reversal of provision expense totaling $1.0 million for the three month period ended December 31, 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The allowance for credit losses to total loans was 1.64% as of December 31, 2022, compared to 1.61% as of the trailing quarter end, and 1.74% as of December 31, 2021. Non-performing assets to total assets were 0.25% at December 31, 2022, as compared to 0.21% as of September 30, 2022, and 0.38% at December 31, 2021.

 **<u>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</u>**

*Financial results reported in this document are preliminary. Final financial results and other disclosures will be reported in our Annual Report on Form 10-K for the period ended December 31, 2022, 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.*

------

**<u>Summary Results</u>**

The following is a summary of the components of the Company's operating results and performance ratios for the periods indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three months ended | Three months ended | | |
| | December 31, | September 30, | | |
| (dollars and shares in thousands, except per share data) | 2022 | 2022 | $ Change | % Change |
| Net interest income | $98900 | $94106 | $4794 | 5.1% |
| Provision for credit losses | (4245) | (3795) | (450) | 11.9% |
| Noninterest income | 15880 | 15640 | 240 | 1.5% |
| Noninterest expense | (59469) | (54465) | (5004) | 9.2% |
| Provision for income taxes | (14723) | (14148) | (575) | 4.1% |
| Net income | $36343 | $37338 | $(995) | (2.7)% |
| Diluted earnings per share | $1.09 | $1.12 | $(0.03) | (2.7)% |
| Dividends per share | $0.30 | $0.30 | $— | —% |
| Average common shares | 33330 | 33348 | (18) | (0.1)% |
| Average diluted common shares | 33467 | 33463 | 4 | —% |
| Return on average total assets | 1.45% | 1.46% |  |  |
| Return on average equity | 14.19% | 13.78% |  |  |
| Efficiency ratio | 51.81% | 49.63% |  |  |

---

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three months ended<br>December 31, | Three months ended<br>December 31, | | |
| (dollars and shares in thousands, except per share data) | 2022 | 2021 | $ Change | % Change |
| Net interest income | $98900 | $69783 | $29117 | 41.7% |
| (Provision for) reversal of credit losses | (4245) | (980) | (3265) | 333.2% |
| Noninterest income | 15880 | 16502 | (622) | (3.8)% |
| Noninterest expense | (59469) | (46679) | (12790) | 27.4% |
| Provision for income taxes | (14723) | (10404) | (4319) | 41.5% |
| Net income | $36343 | $28222 | $8121 | 28.8% |
| Diluted earnings per share | $1.09 | $0.94 | $0.15 | 16.0% |
| Dividends per share | $0.30 | $0.25 | $0.05 | 20.0% |
| Average common shares | 33330 | 29724 | 3606 | 12.1% |
| Average diluted common shares | 33467 | 29870 | 3597 | 12.0% |
| Return on average total assets | 1.45% | 1.31% |  |  |
| Return on average equity | 14.19% | 11.20% |  |  |
| Efficiency ratio | 51.81% | 54.10% |  |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Twelve months ended<br>December 31, | Twelve months ended<br>December 31, | | |
| (dollars and shares in thousands) | 2022 | 2021 | $ Change | % Change |
| Net interest income | $345976 | $271539 | $74437 | 27.4% |
| Reversal of (provision for) credit losses | (18470) | 6775 | (25245) | (372.6)% |
| Noninterest income | 63046 | 63664 | (618) | (1.0)% |
| Noninterest expense | (216645) | (178275) | (38370) | 21.5% |
| Provision for income taxes | (48488) | (46048) | (2440) | 5.3% |
| Net income | $125419 | $117655 | $7764 | 6.6% |
| Diluted earnings per share | $3.83 | $3.94 | $(0.11) | (2.8)% |
| Dividends per share | $1.10 | $1.00 | $0.10 | 10.0% |
| Average common shares | 32584 | 29721 | 2863 | 9.6% |
| Average diluted common shares | 32721 | 29882 | 2839 | 9.5% |
| Return on average total assets | 1.28% | 1.43% |  |  |
| Return on average equity | 11.67% | 12.10% |  |  |
| Efficiency ratio | 52.97% | 53.18% |  |  |

---

------

**<u>Balance Sheet</u>**

Total loans outstanding, excluding PPP, grew to $6.45 billion as of December 31, 2022, an increase of 32.8% over the prior twelve months, of which 17.3% was related to organic loan growth. Investments increased to $2.63 billion as of December 31, 2022, an increase of 8.5% annualized over the prior year quarter end. Quarterly average earning assets to quarterly total average assets were generally unchanged at 91.4% at December 31, 2022, as compared to 92.0% and 93.0% at September 30, 2022, and December 31, 2021, respectively. The loan to deposit ratio was 77.4% at December 31, 2022, as compared to 73.0% and 66.7% at September 30, 2022, and December 31, 2021, respectively.

Total shareholders' equity increased by $56.1 million during the quarter ended December 31, 2022, as a result of an improvement in accumulated other comprehensive losses of $28.8 million and net income of $36.3 million, partially offset by cash dividend payments on common stock of approximately $9,999,000. As a result, the Company's book value was $31.39 per share at December 31, 2022 as compared to $29.71 and $33.64 at September 30, 2022, and December 31, 2021, respectively. 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 $21.76 per share at December 31, 2022, as compared to $19.92 and $25.80 at September 30, 2022, and December 31, 2021, respectively.

**Trailing Quarter Balance Sheet Change**

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| | | | | |
|:---|:---|:---|:---|:---|
| Ending balances | December 31, | September 30, |  | Annualized<br> % Change |
| (dollars in thousands) | 2022 | 2022 | $ Change | Annualized<br> % Change |
| Total assets | $9930986 | $9976879 | $(45893) | (1.8)% |
| Total loans | 6450447 | 6314290 | 136157 | 8.6 |
| Total loans, excluding PPP | 6448845 | 6312348 | 136497 | 8.6 |
| Total investments | 2633269 | 2668145 | (34876) | (5.2) |
| Total deposits | 8329013 | 8655769 | (326756) | (15.1) |
| Total other borrowings | $264605 | $47068 | $217537 | 1848.7% |

---

Organic loan growth, excluding PPP, of $136.5 million or 8.6% on an annualized basis was realized during the quarter ended December 31, 2022, primarily within commercial real estate. During the quarter, and exclusive of PPP balance changes, loan originations/draws totaled approximately $479.0 million while payoffs/repayments of loans totaled $343.0 million, which compares to origination/draws and payoff/repayments activity during the three months ended September 30, 2022 of $737.0 million and $536.0 million, respectively. While management believes the loan pipeline remain sufficient to support projected loan growth, loan pipeline activity has moderated due to customer sensitivity from the rising interest rate environment and Company's continued focus on disciplined underwriting. Investment security balances decreased $34.9 million or 5.2% on an annualized basis as the result of prepayments/maturities totaling approximating $62.0 million, partially offset by increases in the market value of securities. Management seeks to utilize excess cash flows from the investment security portfolio to support loan growth or reduce borrowings thus resulting in an improved the mix of earning assets. Deposit balances also decreased, with a change of $326.8 million or 15.1% annualized during the period. Cash flow needs were supported by net short-term FHLB advances totaling $216.7 million as of and for the quarter ended December 31, 2022.

**Average Trailing Quarter Balance Sheet Change**

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| | | | | |
|:---|:---|:---|:---|:---|
| Quarterly average balances for the period ended | December 31, | September 30, |  | Annualized% Change |
| (dollars in thousands) | 2022 | 2022 | $ Change | Annualized% Change |
| Total assets | $9932931 | $10131118 | $(198187) | (7.8)% |
| Total loans | 6358998 | 6171042 | 187956 | 12.2 |
| Total loans, excluding PPP | 6357250 | 6162267 | 194983 | 12.7 |
| Total investments | 2624062 | 2802119 | (178057) | (25.4) |
| Total deposits | 8545172 | 8752215 | (207043) | (9.5) |
| Total other borrowings | $85927 | $38908 | $47019 | 483.4% |

---

------

**Year Over Year Balance Sheet Change**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Ending balances | As of December 31, | As of December 31, |  | Acquired Balances | Organic<br>$ Change | Organic<br> % Change |
| (dollars in thousands) | 2022 | 2021 | $ Change | Acquired Balances | Organic<br>$ Change | Organic<br> % Change |
| Total assets | $9930986 | $8614787 | $1316199 | $1363529 | $(47330) | (0.5)% |
| Total loans | 6450447 | 4916624 | 1533823 | 773390 | 760433 | 15.5 |
| Total loans, excluding PPP | 6448845 | 4855477 | 1593368 | 751978 | 841390 | 17.3 |
| Total investments | 2633269 | 2427885 | 205384 | 109716 | 95668 | 3.9 |
| Total deposits | 8329013 | 7367159 | 961854 | 1215479 | (253625) | (3.4) |
| Total other borrowings | $264605 | $50087 | $214518 | $— | $214518 | 428.3% |

---

Non-PPP loan balances increased as a result of organic activities by approximately $841.4 million or 17.3% during the twelve month period ending December 31, 2022. Investment securities increased to $2.6 billion at December 31, 2022, an organic change of $95.7 million or 3.9% from the prior year. When combined with balances acquired from Valley Republic Bank, this represents an increase of approximately $1.7 billion in earning assets during the last twelve months and an increase of more than $1.1 billion in average earning assets during the same period.

**<u>Net Interest Income and Net Interest Margin</u>**

During the year ended December 31, 2022 the Federal Open Market Committee's (FOMC) actions have resulted in seven rate hike events for a cumulative increase in the Fed Funds Rate of 4.25%. During the same period the Company's yield on total loans (excluding PPP) increased 37 basis points to 5.10% for the three months ended December 31, 2022, from 4.73% for the three months ended December 31, 2021. Moreover, the tax equivalent yield on the Company's investment security portfolio increased by 1.44% to 3.13% during the year ended December 31, 2022. The cost of total interest-bearing deposits and total interest-bearing liabilities increased by 12 basis points and 21 basis points respectively between the three month periods ended December 31, 2022 and 2021.

As is common within the banking industry and more specific to the Company's history of deposit cost changes in a rising rate environment, management has observed a lagging or delayed reaction to changes in its deposit costs, particularly during periods of time when the Fed Funds Rate is 3.50% or less. The Company is able to better manage its cost of deposits through the use of exception based pricing strategies and delayed changes to the deposit rates offered to the general public. More specifically, the Company only recently, during December 2022, increased certain of the rates offered to deposit customers. Since FOMC rate actions began, the Company's total cost of deposits have increased 6 basis points which translates to a cycle to date deposit Beta of 1.41%.

The following is a summary of the components of net interest income for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three months ended | Three months ended | | |
| | December 31, | September 30, | | |
| (dollars in thousands) | 2022 | 2022 | Change | % Change |
| Interest income | $102989 | $96366 | $6623 | 6.9% |
| Interest expense | (4089) | (2260) | (1829) | 80.9% |
| Fully tax-equivalent adjustment (FTE) <sup>(1)</sup> | 440 | 440 |  | —% |
| Net interest income (FTE) | $99340 | $94546 | $4794 | 5.1% |
| Net interest margin (FTE) | 4.34% | 4.02% |  |  |
| Acquired loans discount accretion, net: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount (included in interest income) | $1751 | $714 | $1037 | 145.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest margin less effect of acquired loan discount accretion<sup>(1)</sup> | 4.27% | 3.99% | 0.28% |  |
| PPP loans yield, net: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount (included in interest income) | $16 | $313 | $(297) | (94.9)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest margin less effect of PPP loan yield <sup>(1)</sup> | 4.34% | 4.02% | 0.32% |  |
| Acquired loans discount accretion and PPP loan yield, net:  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount (included in interest income) | $1767 | $1027 | $740 | 72.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest margin less effect of acquired loan discount accretion and PPP loan yield <sup>(1)</sup> | 4.27% | 3.98% | 0.29% |  |

---

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three months ended<br>December 31, | Three months ended<br>December 31, | | |
| (dollars in thousands) | 2022 | 2021 | Change | % Change |
| Interest income | $102989 | $71024 | $31965 | 45.0% |
| Interest expense | (4089) | (1241) | (2848) | 229.5% |
| Fully tax-equivalent adjustment (FTE) <sup>(1)</sup> | 440 | 274 | 166 | 60.6% |
| Net interest income (FTE) | $99340 | $70057 | $29283 | 41.8% |
| Net interest margin (FTE) | 4.34% | 3.50% |  |  |
| Acquired loans discount accretion, net: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount (included in interest income) | $1751 | $1780 | $(29) | (1.6)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest margin less effect of acquired loan discount accretion<sup>(1)</sup> | 4.27% | 3.41% | 0.86% |  |
| PPP loans yield, net: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount (included in interest income) | $16 | $4094 | $(4078) | (99.6)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest margin less effect of PPP loan yield <sup>(1)</sup> | 4.34% | 3.34% | 1.00% |  |
| Acquired loans discount accretion and PPP loan yield, net:  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount (included in interest income) | $1767 | $5874 | $(4107) | (69.9)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest margin less effect of acquired loan discount accretion and PPP loan yield <sup>(1)</sup> | 4.27% | 3.25% | 1.02% |  |

---

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| | | | | |
|:---|:---|:---|:---|:---|
| | Twelve months ended<br>December 31, | Twelve months ended<br>December 31, | | |
| (dollars in thousands) | 2022 | 2021 | Change | % Change |
| Interest income | $355505 | $277047 | $78458 | 28.3% |
| Interest expense | (9529) | (5508) | (4021) | 73.0% |
| Fully tax-equivalent adjustment (FTE) <sup>(1)</sup> | 1560 | 1071 | 489 | 45.7% |
| Net interest income (FTE) | $347536 | $272610 | $74926 | 27.5% |
| Net interest margin (FTE) | 3.88% | 3.58% |  |  |
| Acquired loans discount accretion, net: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount (included in interest income) | $5465 | $8091 | $(2626) | (32.5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest margin less effect of acquired loan discount accretion<sup>(1)</sup> | 3.81% | 3.47% | 0.34% |  |
| PPP loans yield, net: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount (included in interest income) | $2390 | $16643 | $(14253) | (85.6)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest margin less effect of PPP loan yield <sup>(1)</sup> | 3.86% | 3.48% | 0.38% |  |
| Acquired loans discount accretion and PPP loan yield, net:  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount (included in interest income) | $7855 | $24734 | $(16879) | (68.2)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest margin less effect of acquired loans discount and PPP loan yield <sup>(1)</sup> | 3.80% | 3.37% | 0.43% |  |

---

(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.

Loans may be acquired at a premium or discount to par value, in which case, the premium is amortized (subtracted from) or the discount is accreted (added to) interest income over the remaining life of the loan. Generally, as time goes on, the dollar impact of loan discount accretion and loan premium amortization decrease as the purchased loans mature or pay off early. Upon the early pay off of a loan, any remaining unaccreted discount or unamortized premium is immediately taken into interest income; and as loan payoffs may vary significantly from quarter to quarter, so may the impact of discount accretion and premium amortization on interest income. As a result of the increase in interest rates, the prepayment rate of portfolio loans, inclusive of those acquired at a premium or discount, declined during 2022 as compared to 2021. During the three months ended December 31, 2022, September 30, 2022, and December 31, 2021, purchased loan discount accretion was $1,751,000, $714,000, and $1,780,000, respectively.

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The following table shows the components of net interest income and net interest margin on a fully tax-equivalent (FTE) basis for the quarterly periods indicated:

ANALYSIS OF CHANGE IN NET INTEREST MARGIN ON EARNING ASSETS

(unaudited, dollars in thousands)

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | Three months ended | Three months ended | Three months ended | Three months ended | Three months ended | Three months ended | Three months ended | Three months ended | Three months ended |
| | December 31, 2022 | December 31, 2022 | December 31, 2022 | September 30, 2022 | September 30, 2022 | September 30, 2022 | December 31, 2021 | December 31, 2021 | December 31, 2021 |
| | Average<br>Balance | Income/<br>Expense | Yield/<br>Rate | Average<br>Balance | Income/<br>Expense | Yield/<br>Rate | Average<br>Balance | Income/<br>Expense | Yield/<br>Rate |
| Assets |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loans, excluding PPP | $6357250 | $81740 | 5.10% | $6162267 | $75643 | 4.87% | $4759294 | $56710 | 4.73% |
| &nbsp;&nbsp;&nbsp;PPP loans | 1748 | 16 | 3.63% | 8775 | 313 | 14.15% | 103163 | 4094 | 15.74% |
| &nbsp;&nbsp;&nbsp;Investments-taxable | 2414236 | 18804 | 3.09% | 2591513 | 17122 | 2.62% | 2261161 | 9028 | 1.58% |
| &nbsp;&nbsp;&nbsp;Investments-nontaxable <sup>(1)</sup> | 209826 | 1906 | 3.60% | 210606 | 1908 | 3.59% | 141421 | 1186 | 3.33% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments | 2624062 | 20710 | 3.13% | 2802119 | 19030 | 2.69% | 2402582 | 10214 | 1.69% |
| Cash at Federal Reserve and other banks | 93390 | 963 | 4.09% | 346991 | 1820 | 2.08% | 682759 | 280 | 0.16% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total earning assets | 9076450 | 103429 | 4.52% | 9320152 | 96806 | 4.12% | 7947798 | 71298 | 3.56% |
| Other assets, net | 856481 |  |  | 810966 |  |  | 598206 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $9932931 |  |  | $10131118 |  |  | $8546004 |  |  |
| Liabilities and shareholders' equity |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing demand deposits | $1709494 | $150 | 0.03% | $1775884 | $119 | 0.03% | $1544176 | $58 | 0.01% |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings deposits | 2921935 | 1815 | 0.25% | 3011145 | 685 | 0.09% | 2486532 | 291 | 0.05% |
| &nbsp;&nbsp;&nbsp;&nbsp;Time deposits | 251218 | 205 | 0.32% | 321100 | 188 | 0.23% | 315953 | 349 | 0.44% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 4882647 | 2170 | 0.18% | 5108129 | 992 | 0.08% | 4346661 | 698 | 0.06% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other borrowings | 85927 | 406 | 1.87% | 38908 | 5 | 0.05% | 50667 | 7 | 0.05% |
| &nbsp;&nbsp;&nbsp;&nbsp;Junior subordinated debt | 101030 | 1513 | 5.94% | 101011 | 1263 | 4.96% | 58004 | 536 | 3.67% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 5069604 | 4089 | 0.32% | 5248048 | 2260 | 0.17% | 4455332 | 1241 | 0.11% |
| &nbsp;&nbsp;&nbsp;&nbsp;Noninterest-bearing deposits | 3662525 |  |  | 3644086 |  |  | 2957998 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 184334 |  |  | 164208 |  |  | 132910 |  |  |
| Shareholders' equity | 1016468 |  |  | 1074776 |  |  | 999764 |  |  |
| Total liabilities and shareholders' equity | $9932931 |  |  | $10131118 |  |  | $8546004 |  |  |
| Net interest rate spread <sup>(1) (2)</sup> |  |  | 4.20% |  |  | 3.95% |  |  | 3.45% |
| Net interest income and margin <sup>(1) (3)</sup> |  | $99340 | 4.34% |  | $94546 | 4.02% |  | $70057 | 3.50% |

---

(1)Fully taxable equivalent (FTE). All yields and rates are calculated using specific day counts for the period and year as applicable.

(2)Net interest spread is the average yield earned on interest-earning assets minus the average rate paid on interest-bearing liabilities.

(3)Net interest margin is computed by calculating the difference between interest income and interest expense, divided by the average balance of interest-earning assets.

Net interest income (FTE) during the three months ended December 31, 2022 increased $4.8 million or 5.1% to $99.3 million compared to $94.5 million during the three months ended September 30, 2022. In addition, net interest margin improved 32 basis points to 4.34%, as compared to the trailing quarter. The increase in net interest income is primarily attributed to an additional $5.8 million in loan interest and fee income and $1.7 million in investment income, due to increases in average volume and rates as compared to the trailing quarter, respectively. As a partial offset, increases in interest rates on deposits and subordinated debt led to an increase of $1.2 million and $250,000, respectively, in interest expense over the same period.

As compared to the same quarter in the prior year, average loan yields, excluding PPP, increased 37 basis points from 4.73% during the three months ended December 31, 2021, to 5.10% during the three months ended December 31, 2022. The accretion of discounts from acquired loans added 11 and 15 basis points to loan yields during the quarters ended December 31, 2022 and December 31, 2021, respectively. Therefore, the 37 basis point increase in yields on loans during the comparable three month periods ended December 31, 2022 and 2021 was the net effect of a 41 basis point increase in market loan rates, partially offset by a 4 basis point decline in the accretion of discounts.

The rates paid on interest bearing deposits increased by 10 basis points during the quarter ended December 31, 2022 compared to the trailing quarter. The cost of interest-bearing deposits increased by 12 basis points between the quarter ended December 31, 2022 and the same quarter of the prior year. In addition, the level of noninterest-bearing deposits increased by approximately $18.0 million quarter over quarter and continues to benefit the average cost of total deposits, which increased by 6 basis points as compared to the trailing quarter, and fourth quarter of prior year. As of December 31, 2022, the ratio of average total noninterest-bearing deposits to total average deposits was 42.9%.

------

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Twelve months ended December 31, 2022 | Twelve months ended December 31, 2022 | Twelve months ended December 31, 2022 | Twelve months ended December 31, 2021 | Twelve months ended December 31, 2021 | Twelve months ended December 31, 2021 |
| | Average<br>Balance | Income/<br>Expense | Yield/<br>Rate | Average<br>Balance | Income/<br>Expense | Yield/<br>Rate |
| Assets |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loans, excluding PPP | $5841770 | $282985 | 4.84% | $4625410 | $225626 | 4.88% |
| &nbsp;&nbsp;&nbsp;PPP loans | 24590 | 2390 | 9.72% | 250391 | 16643 | 6.65% |
| &nbsp;&nbsp;&nbsp;Investments-taxable | 2459032 | 60499 | 2.46% | 1914788 | 30352 | 1.59% |
| &nbsp;&nbsp;&nbsp;Investments-nontaxable <sup>(1)</sup> | 190339 | 6759 | 3.55% | 160863 | 4639 | 2.88% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments | 2649371 | 67258 | 2.54% | 2075651 | 34991 | 1.69% |
| Cash at Federal Reserve and other banks | 452300 | 4432 | 0.98% | 663801 | 858 | 0.13% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total earning assets | 8968031 | 357065 | 3.98% | 7615253 | 278118 | 3.65% |
| Other assets, net | 803570 |  |  | 594420 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $9771601 |  |  | $8209673 |  |  |
| Liabilities and shareholders' equity |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing demand deposits | $1720932 | $452 | 0.03% | $1493922 | $327 | 0.02% |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings deposits | 2878189 | 3356 | 0.12% | 2360605 | 1256 | 0.05% |
| &nbsp;&nbsp;&nbsp;&nbsp;Time deposits | 302619 | 881 | 0.29% | 324636 | 1735 | 0.53% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 4901740 | 4689 | 0.10% | 4179163 | 3318 | 0.08% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other borrowings | 33410 | 421 | 1.26% | 43236 | 22 | 0.05% |
| &nbsp;&nbsp;&nbsp;&nbsp;Junior subordinated debt | 91138 | 4419 | 4.85% | 57844 | 2168 | 3.75% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 5026288 | 9529 | 0.19% | 4280243 | 5508 | 0.13% |
| &nbsp;&nbsp;&nbsp;&nbsp;Noninterest-bearing deposits | 3492713 |  |  | 2837745 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 178163 |  |  | 119471 |  |  |
| Shareholders' equity | 1074437 |  |  | 972214 |  |  |
| Total liabilities and shareholders' equity | $9771601 |  |  | $8209673 |  |  |
| Net interest rate spread <sup>(1) (2)</sup> |  |  | 3.79% |  |  | 3.52% |
| Net interest income and margin <sup>(1) (3)</sup> |  | $347536 | 3.88% |  | $272610 | 3.58% |

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(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.

**<u>Interest Rates and Earning Asset Composition</u>**

During the quarter ended December 31, 2022, market interest rates, including many rates that serve as reference indices for variable rate loans and investment securities continued to increase. As noted above, these rate increases have continued to benefit growth in total interest income. As of December 31, 2022, the Company's loan portfolio consisted of approximately $6.4 billion in outstanding principal with a weighted average coupon rate of 4.89%. During the three month periods ending December 31, 2022, September 30, 2022 and June 20, 2022, the weighted average coupon on loan production in the quarter was 6.25%, 5.24% and 4.45%, respectively. Included in the December 31, 2022 loan total are variable rate loans totaling $3.6 billion, of which, $875 million are considered floating based on the Wall Street Prime index. In addition, the Company holds certain investment securities totaling $408 million which are subject to repricing on not less than a quarterly basis.

**<u>Asset Quality and Credit Loss Provisioning</u>**

During the three months ended December 31, 2022, the Company recorded a provision for credit losses of $4,245,000, as compared to $3,795,000 during the trailing quarter, and $980,000 during the fourth quarter of 2021.

The following table presents details of the provision for credit losses for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three months ended | Three months ended | Three months ended | Three months ended |
| (dollars in thousands) | December 31, 2022 | September 30, 2022 | June 30, 2022 | December 31, 2021 |
| Addition to allowance for credit losses | $4300 | $3500 | $1940 | $715 |
| Addition to (reversal of) reserve for unfunded loan commitments | (55) | 295 | 160 | 265 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total provision for credit losses | $4245 | $3795 | $2100 | $980 |

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The following table presents the activity in the allowance for credit losses on loans for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three months ended | Three months ended | Twelve months ended | Twelve months ended |
| (dollars in thousands) | December 31, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 |
| &nbsp;&nbsp;&nbsp;Balance, beginning of period | $101488 | $84306 | $85376 | $91847 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ACL at acquisition for PCD loans |  |  | 2037 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for (reversal of) credit losses | 4300 | 715 | 17945 | (7165) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans charged-off | (174) | (197) | (1585) | (2392) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoveries of previously charged-off loans | 66 | 552 | 1907 | 3086 |
| &nbsp;&nbsp;&nbsp;Balance, end of period | $105680 | $85376 | $105680 | $85376 |

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The allowance for credit losses (ACL) was $105,680,000 as of December 31, 2022, a net increase of $4,192,000 over the immediately preceding quarter. The provision for credit losses of $4,300,000 during the quarter was the net effect of increases in required reserves due to qualitative factors, individually analyzed credits and quantitative reserves under the cohort model. In addition to the aforementioned quarterly increase, the provision for credit losses of $17,945,000 during the year ended December 31, 2022 was largely comprised of $10,820,000 in day 1 required reserves from loans acquired in connection with the Valley Republic Bank merger in the first quarter of 2022. For the quarter, the qualitative components of the ACL resulted in a net increase in required reserves totaling approximately $2,950,000, despite continued improvement in US employment rates, due to increased uncertainty in the global economic markets, US economic policy uncertainty, and the continued rise in corporate debt yields. Meanwhile, the quantitative component of the ACL increased reserve requirements by approximately $1,240,000 over the trailing quarter due to loan volume growth and increases in specific reserves.

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 included improving shifts in the magnitude of changes for both the unemployment and GDP factors leading up to the balance sheet date, particularly CA unemployment trends. As compared to historical norms, inflation remains elevated from continued disruptions in the supply chain, wage pressures, and higher living costs such as housing and food prices Despite the expected continued benefit to the net interest income of the Company from the elevated rate environment, Management notes the rapid intervals of rate increases by the Federal Reserve and flattening or inversion of the yield curve, have boosted expectations of the US entering a recession within 12 months and has led to the lowest levels of consumer sentiment in decades. As a result, management continues to believe that certain credit weakness are likely present in the overall economy and that it is appropriate to cautiously maintain a reserve level that incorporates such risk factors.

Loans past due 30 days or more decreased by $1,524,000 during the quarter ended December 31, 2022 to $4,947,000, as compared to $6,471,000 at September 30, 2022. Non-performing loans were $21,321,000 at December 31, 2022, an increase of $3,850,000 from $17,471,000 as of September 30, 2022, and a decrease of $9,029,000 from $30,350,000 as of December 31, 2021. Of the $21,321,000 loans designated as non-performing, approximately $19,500,000 are less than 30 days past due as of December 31, 2022. The current quarter change in non-performing assets is nearly entirely attributed to a single CRE relationship, which is considered well-secured as of the current period end.

The following table illustrates the total loans by risk rating and their respective percentage of total loans for the periods presented.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | December 31, | % of Total Loans | September 30, | % of Total Loans | December 31, | % of Total Loans |
| (dollars in thousands) | 2022 | % of Total Loans | 2022 | % of Total Loans | 2021 | % of Total Loans |
| Risk Rating: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pass | $6251945 | 96.9% | $6133805 | 97.1% | $4787077 | 97.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Special Mention | 127000 | 2.0% | 126273 | 2.0% | 77461 | 1.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Substandard | 71502 | 1.1% | 54212 | 0.9% | 52086 | 1.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $6450447 |  | $6314290 |  | $4916624 |  |
| Classified loans to total loans | 1.11% |  | 0.86% |  | 1.06% |  |
| Loans past due 30+ days to total loans | 0.08% |  | 0.10% |  | 0.09% |  |

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The ratio of classified loans increased to 1.11% as of December 31, 2022 as compared to 0.86% in the trailing quarter, and increased by 5 basis points from the equivalent period in 2021. The Company's criticized loan balances increased during the current quarter by $18,017,000 to $198,502,000 as of December 31, 2022. This change was primarily driven by one newly criticized relationship totaling approximately $22,400,000 that is performing as agreed and believed by management to be well-secured but was downgraded to substandard during the quarter.

There was one property added to Other Real Estate Owned totaling $311,000 during the quarter ended December 31, 2022, and one disposal totaling $394,000. As of December 31, 2022, other real estate owned consisted of nine properties with a carrying value of approximately $3,439,000.

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Non-performing assets of $24,760,000 at December 31, 2022 represented 0.25% of total assets, generally in line with the $20,912,000 or 0.21% and $32,944,000 or 0.38% as of September 30, 2022 and December 31, 2021, respectively.

**<u>Allocation of Credit Loss Reserves by Loan Type</u>**

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| | | | | |
|:---|:---|:---|:---|:---|
| | As of December 31, 2022 | As of December 31, 2022 | As of December 31, 2021 | As of December 31, 2021 |
| (dollars in thousands) | Amount | % of Loans Outstanding | Amount | % of Loans Outstanding |
| Commercial real estate: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; CRE - Non Owner Occupied | $30962 | 1.44% | $25739 | 1.61% |
| &nbsp;&nbsp;&nbsp;&nbsp; CRE - Owner Occupied | 14014 | 1.42% | 10691 | 1.51% |
| &nbsp;&nbsp;&nbsp;&nbsp; Multifamily | 13132 | 1.39% | 12395 | 1.51% |
| &nbsp;&nbsp;&nbsp;&nbsp; Farmland | 3273 | 1.17% | 2315 | 1.34% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total commercial real estate loans | 61381 | 1.41% | 51140 | 1.55% |
| Consumer: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; SFR 1-4 1st Liens | 11268 | 1.43% | 10723 | 1.60% |
| &nbsp;&nbsp;&nbsp;&nbsp; SFR HELOCs and Junior Liens | 11413 | 2.90% | 10510 | 3.11% |
| &nbsp;&nbsp;&nbsp;&nbsp; Other | 1958 | 3.45% | 2241 | 3.34% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total consumer loans | 24639 | 1.99% | 23474 | 2.19% |
| Commercial and Industrial | 13597 | 2.39% | 3862 | 1.49% |
| Construction | 5142 | 2.43% | 5667 | 2.55% |
| Agricultural Production | 906 | 1.48% | 1215 | 2.39% |
| Leases | 15 | 0.19% | 18 | 0.27% |
| &nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses | 105680 | 1.64% | 85376 | 1.74% |
| Reserve for unfunded loan commitments | 4315 |  | 3790 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total allowance for credit losses | $109995 | 1.71% | $89166 | 1.81% |

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For the periods presented in the table above and for purposes of calculating the "% of Loans Outstanding", PPP loans are included in the segment "Commercial and Industrial." PPP loans are fully guaranteed and therefore would not require any loss reserve allocation. Excluding the net outstanding balances of PPP loans from the ratio of the ACL to total loans results in a reserve ratio of approximately 1.64% as of December 31, 2022. 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 December 31, 2022, the unamortized discount associated with acquired loans totaled $30.5 million and, if aggregated with the ACL, would collectively represent 2.10% of total gross loans and 2.11% of total loans less PPP loans.

**<u>SBA Paycheck Protection Program</u>**

In March 2020 (Round 1) and subsequently in December 2020 (Round 2), the Small Business Administration ("SBA") Paycheck Protection Program ("PPP") was created to help small businesses keep workers employed during the COVID-19 crisis. Tri Counties Bank, through its online portal, facilitated the ability for borrowers to open a new deposit account and submit PPP applications during the entirety of the Programs. The SBA ended PPP and did not accept new borrowing applications, effective May 31, 2021. The following is a summary of PPP loan related information as of the periods indicated:

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| | | |
|:---|:---|:---|
| (dollars in thousands) | December 31, 2022 | December 31, 2021 |
| Total number of PPP loans outstanding | 10 | 450 |
| PPP loan balance (TCBK round 1 origination), gross | $396 | $2544 |
| PPP loan balance (TCBK round 2 origination), gross | 235 | 60767 |
| Acquired PPP loan balance (VRB origination), gross | 986 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total PPP loans, gross outstanding | $1617 | $63311 |
| PPP deferred loan fees (Round 1 origination) |  | 1 |
| PPP deferred loan fees (Round 2 origination) | 15 | 2163 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total PPP deferred loan fees (costs) outstanding | $15 | $2164 |

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As of December 31, 2022, there was approximately $15,000 in net deferred fee income remaining to be recognized. During the three months ended December 31, 2022, the Company recognized $12,000 in fees on PPP loans as compared with $291,000 and

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$3,842,000 for the three months ended September 30, 2022 and December 31, 2021, respectively. Based on the payment guarantee provided by the SBA as well as the expected short-term duration of the PPP loans acquired from VRB, the fair value of these loans approximates the principal balance outstanding as of the merger date, and therefore, no purchase discount was recorded.

**<u>Non-interest Income</u>**

The following table presents the key components of non-interest income for the current and trailing quarterly periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three months ended | Three months ended | | |
| (dollars in thousands) | December 31, 2022 | September 30, 2022 | Change | % Change |
| ATM and interchange fees | $6826 | $6714 | $112 | 1.7% |
| Service charges on deposit accounts | 4103 | 4436 | (333) | (7.5)% |
| Other service fees | 1091 | 1022 | 69 | 6.8% |
| Mortgage banking service fees | 465 | 477 | (12) | (2.5)% |
| Change in value of mortgage servicing rights | (142) | 33 | (175) | (530.3)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total service charges and fees | 12343 | 12682 | (339) | (2.7)% |
| Increase in cash value of life insurance | 809 | 659 | 150 | 22.8% |
| Asset management and commission income | 1040 | 1020 | 20 | 2.0% |
| Gain on sale of loans | 197 | 357 | (160) | (44.8)% |
| Lease brokerage income | 172 | 252 | (80) | (31.7)% |
| Sale of customer checks | 296 | 326 | (30) | (9.2)% |
| Gain on sale of investment securities |  |  |  | n/m |
| Gain (loss) on marketable equity securities | 6 | (115) | 121 | (105.2)% |
| Other income | 1017 | 459 | 558 | 121.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other non-interest income | 3537 | 2958 | 579 | 19.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest income | $15880 | $15640 | $240 | 1.5% |

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Non-interest income increased $240,000 or 1.5% to $15,880,000 during the three months ended December 31, 2022, compared to $15,640,000 during the quarter ended September 30, 2022. Other income increased by $558,000 largely from an increase in fees earned from the sale of deposits, but partially offset by a decline in service charges on deposits accounts totaling $333,000, which is directly related to the Company's decision to no longer charge fees for returned check items.

The following table presents the key components of non-interest income for the current and prior year periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three months ended December 31, | Three months ended December 31, | | |
| (dollars in thousands) | 2022 | 2021 | Change | % Change |
| ATM and interchange fees | $6826 | $6421 | $405 | 6.3% |
| Service charges on deposit accounts | 4103 | 3674 | 429 | 11.7% |
| Other service fees | 1091 | 888 | 203 | 22.9% |
| Mortgage banking service fees | 465 | 475 | (10) | (2.1)% |
| Change in value of mortgage servicing rights | (142) | (181) | 39 | (21.5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total service charges and fees | 12343 | 11277 | 1066 | 9.5% |
| Increase in cash value of life insurance | 809 | 713 | 96 | 13.5% |
| Asset management and commission income | 1040 | 930 | 110 | 11.8% |
| Gain on sale of loans | 197 | 1672 | (1475) | (88.2)% |
| Lease brokerage income | 172 | 204 | (32) | (15.7)% |
| Sale of customer checks | 296 | 117 | 179 | 153.0% |
| Gain on sale of investment securities |  |  |  | n/m |
| Gain (loss) on marketable equity securities | 6 | (27) | 33 | (122.2)% |
| Other income | 1017 | 1616 | (599) | (37.1)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other non-interest income | 3537 | 5225 | (1688) | (32.3)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest income | $15880 | $16502 | $(622) | (3.8)% |

---

Generally, the increases in recurring non-interest income service charges and fees reflects the VRB merger closing in March of 2022, and therefore, related income for the combined entities are only being captured within the most recent three months ended December 31, 2022. As noted above, decreasing mortgage related activity resulting from elevated interest rates reduced the gain on

------

sale of loans recorded during the quarter by $1,475,000 or 88.2%, as compared to the three months ended December 31, 2021. Further, other non-interest income declined by $599,000 or 37.1% during the quarter ended December 31, 2022 as the last quarter of 2021 included non-recurring death benefit proceeds of $702,000.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Twelve months ended December 31, | Twelve months ended December 31, | | |
| (dollars in thousands) | 2022 | 2021 | Change | % Change |
| ATM and interchange fees | $26767 | $25356 | $1411 | 5.6% |
| Service charges on deposit accounts | 16536 | 14013 | 2523 | 18.0% |
| Other service fees | 4274 | 3570 | 704 | 19.7% |
| Mortgage banking service fees | 1887 | 1881 | 6 | 0.3% |
| Change in value of mortgage servicing rights | 301 | (872) | 1173 | (134.5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total service charges and fees | 49765 | 43948 | 5817 | 13.2% |
| Increase in cash value of life insurance | 2858 | 2775 | 83 | 3.0% |
| Asset management and commission income | 3986 | 3668 | 318 | 8.7% |
| Gain on sale of loans | 2342 | 9580 | (7238) | (75.6)% |
| Lease brokerage income | 820 | 746 | 74 | 9.9% |
| Sale of customer checks | 1167 | 459 | 708 | 154.2% |
| Gain on sale of investment securities |  |  |  | n/m |
| Loss on marketable equity securities | (340) | (86) | (254) | 295.3% |
| Other income | 2448 | 2574 | (126) | (4.9)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other non-interest income | 13281 | 19716 | (6435) | (32.6)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest income | $63046 | $63664 | $(618) | (1.0)% |

---

The changes in non-interest income for the twelve months ended December 31, 2022 and 2021 are generally consistent with changes in the three month periods discussed above.

------

**<u>Non-interest Expense</u>**

The following table presents the key components of non-interest expense for the current and trailing quarterly periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three months ended | Three months ended | | |
| (dollars in thousands) | December 31, 2022 | September 30, 2022 | Change | % Change |
| Base salaries, net of deferred loan origination costs | $22099 | $22377 | $(278) | (1.2)% |
| Incentive compensation | 6211 | 4832 | 1379 | 28.5% |
| Benefits and other compensation costs | 8301 | 6319 | 1982 | 31.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total salaries and benefits expense | 36611 | 33528 | 3083 | 9.2% |
| Occupancy | 3957 | 3965 | (8) | (0.2)% |
| Data processing and software | 4102 | 3449 | 653 | 18.9% |
| Equipment | 1525 | 1422 | 103 | 7.2% |
| Intangible amortization | 1702 | 1702 |  | —% |
| Advertising | 1249 | 990 | 259 | 26.2% |
| ATM and POS network charges | 2134 | 1694 | 440 | 26.0% |
| Professional fees | 1111 | 1172 | (61) | (5.2)% |
| Telecommunications | 638 | 575 | 63 | 11.0% |
| Regulatory assessments and insurance | 815 | 828 | (13) | (1.6)% |
| Merger and acquisition expenses |  |  |  | n/m |
| Postage | 319 | 287 | 32 | 11.1% |
| Operational loss | 235 | 492 | (257) | (52.2)% |
| Courier service | 616 | 497 | 119 | 23.9% |
| Gain on sale or acquisition of foreclosed assets | (235) | (148) | (87) | 58.8% |
| (Gain) loss on disposal of fixed assets | (1) | 4 | (5) | (125.0)% |
| Other miscellaneous expense | 4691 | 4008 | 683 | 17.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other non-interest expense | 22858 | 20937 | 1921 | 9.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest expense | $59469 | $54465 | $5004 | 9.2% |
| Average full-time equivalent staff | 1210 | 1198 | 12 | 1.0% |

---

Non-interest expense for the quarter ended December 31, 2022 increased $5.0 million or 9.2% to $59.5 million as compared to $54.5 million during the trailing quarter ended September 30, 2022. Total salaries and benefits expense increased by $3.1 million or 9.2%, led primarily by an expense of approximately $2.1 million in benefits and other compensation costs, related to the previously announced amendments to certain of the Company's retirement plans. Additionally, incentive compensation related expenses increased by $1.4 million or 28.5% compared to the trailing quarter, due to strong overall Company performance. Advertising costs increased $259,000 or 26.2% during the quarter, connected to an increase in media advertising for promotional campaigns. ATM and point of service network charges increased $440,000 or 26.0% to $2,134,000, linked with card processing equipment conversion expenses of $256,000 in the current quarter. Finally, other miscellaneous expenses increased $683,000 or 17.0% to $4,691,000, resulting largely from $517,000 in additional appraisal costs during the most recent quarter.

------

The following table presents the key components of non-interest expense for the current and prior year quarterly periods indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three months ended December 31, | Three months ended December 31, | | |
| (dollars in thousands) | 2022 | 2021 | Change | % Change |
| Base salaries, net of deferred loan origination costs | $22099 | $19123 | $2976 | 15.6% |
| Incentive compensation | 6211 | 3932 | 2279 | 58.0% |
| Benefits and other compensation costs | 8301 | 4611 | 3690 | 80.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total salaries and benefits expense | 36611 | 27666 | 8945 | 32.3% |
| Occupancy | 3957 | 3713 | 244 | 6.6% |
| Data processing and software | 4102 | 3893 | 209 | 5.4% |
| Equipment | 1525 | 1298 | 227 | 17.5% |
| Intangible amortization | 1702 | 1193 | 509 | 42.7% |
| Advertising | 1249 | 819 | 430 | 52.5% |
| ATM and POS network charges | 2134 | 1551 | 583 | 37.6% |
| Professional fees | 1111 | 927 | 184 | 19.8% |
| Telecommunications | 638 | 534 | 104 | 19.5% |
| Regulatory assessments and insurance | 815 | 678 | 137 | 20.2% |
| Merger and acquisition expenses |  | 872 | (872) | n/m |
| Postage | 319 | 232 | 87 | 37.5% |
| Operational loss | 235 | 299 | (64) | (21.4)% |
| Courier service | 616 | 346 | 270 | 78.0% |
| Gain on sale or acquisition of foreclosed assets | (235) | (23) | (212) | 921.7% |
| (Gain) loss on disposal of fixed assets | (1) | 6 | (7) | (116.7)% |
| Other miscellaneous expense | 4691 | 2675 | 2016 | 75.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other non-interest expense | 22858 | 19013 | 3845 | 20.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest expense | $59469 | $46679 | $12790 | 27.4% |
| Average full-time equivalent staff | 1210 | 1074 | 136 | 12.7% |

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Generally, the increases in recurring non-interest expense items reflect the VRB merger closing in March of 2022, and therefore, related expenses for the combined entities, less certain realized cost savings, are only being captured within the most recent three months ended December 31, 2022. Total non-interest expense increased $12.8 million or 27.4% to $59.5 million during the three months ended December 31, 2022 as compared to $46.7 million for the quarter ended December 31, 2021. Total salaries and benefits expense increased by $8.9 million or 32.3% to $36.6 million, largely from a net increase of 99 full-time equivalent positions following the aforementioned merger with VRB, the build out of other loan production and compliance teams, and the continued strength of organic growth within the loan portfolio driving incentive compensation expense. As noted above, amendments to certain of the Company's retirement plans, contributed to approximately $2.1 million of the $3.7 million increase associated with benefits and other compensation costs. Management believes that these amendments will result in better alignment of compensation costs and the Company's strategic goals as management anticipates that the future service costs associated with these amended retirement plans will be substantially reduced.

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Twelve months ended December 31, | Twelve months ended December 31, | | |
| (dollars in thousands) | 2022 | 2021 | Change | % Change |
| Base salaries, net of deferred loan origination costs | $84861 | $69844 | $15017 | 21.5% |
| Incentive compensation | 17908 | 14957 | 2951 | 19.7% |
| Benefits and other compensation costs | 27083 | 21550 | 5533 | 25.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total salaries and benefits expense | 129852 | 106351 | 23501 | 22.1% |
| Occupancy | 15493 | 14910 | 583 | 3.9% |
| Data processing and software | 14660 | 13985 | 675 | 4.8% |
| Equipment | 5733 | 5358 | 375 | 7.0% |
| Intangible amortization | 6334 | 5464 | 870 | 15.9% |
| Advertising | 3694 | 2899 | 795 | 27.4% |
| ATM and POS network charges | 6984 | 6040 | 944 | 15.6% |
| Professional fees | 4392 | 3657 | 735 | 20.1% |
| Telecommunications | 2298 | 2253 | 45 | 2.0% |
| Regulatory assessments and insurance | 3142 | 2581 | 561 | 21.7% |
| Merger and acquisition expenses | 6253 | 1523 | 4730 | 310.6% |
| Postage | 1147 | 710 | 437 | 61.5% |
| Operational loss | 1000 | 964 | 36 | 3.7% |
| Courier service | 2013 | 1214 | 799 | 65.8% |
| Gain on sale or acquisition of foreclosed assets | (481) | (233) | (248) | 106.4% |
| Gain on disposal of fixed assets | (1070) | (439) | (631) | 143.7% |
| Other miscellaneous expense | 15201 | 11038 | 4163 | 37.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other non-interest expense | 86793 | 71924 | 14869 | 20.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest expense | $216645 | $178275 | $38370 | 21.5% |
| Average full-time equivalent staff | 1169 | 1039 | 130 | 12.5% |

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The changes in non-interest expense for the twelve months ended December 31, 2022 and 2021 are generally consistent with changes in the comparable three month periods discussed above.

**<u>Provision for Income Taxes</u>**

The Company's effective tax rate was 27.9% for the year ended December 31, 2022, as compared to 28.1% for the year ended December 31, 2021. 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.

**<u>About TriCo Bancshares</u>**

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.

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**<u>Forward-Looking Statement</u>**

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. There can be no assurance that future developments affecting us will be the same as those anticipated by management. 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 strength of the United States economy in general and the strength of the local economies in which we conduct operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market and monetary fluctuations impacts on the Company's business condition and financial operating results; the impact of changes in financial services industry policies, laws and regulations; regulatory restrictions on our ability to successfully market and price our products to consumers; technological changes; weather, natural disasters and other catastrophic events that may or may not be caused by climate change and their effects on economic and business environments in which the Company operates; the continuing adverse impact on the U.S. economy, including the markets in which we operate due to the COVID-19 global pandemic; the impact of a slowing U.S. economy and increased unemployment on the performance of our loan portfolio, the market value of our investment securities, the availability 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, terrorism or geopolitical events; 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 mergers, acquisitions or dispositions, identify and complete favorable transactions in the future, and/or realize the contemplated financial business benefits associated with any such activities; 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 lending 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 timing and effects of the implementation of the 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 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; possible other-than-temporary impairment of securities held by us due to changes in credit quality or rates; 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; our noninterest expense and the efficiency ratio; competition and innovation with respect to financial products and services by banks, financial institutions and non-traditional providers including retail businesses and technology companies; the challenges of attracting, integrating and retaining key employees; the costs and effects of litigation and of unexpected or adverse outcomes in such litigation; 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 such incidents; increased data security risks due to work from home arrangements; failure to safeguard personal information; changes to U.S. tax policies, including our effective income tax rate; the effect of a fall in stock market prices on our brokerage and wealth management businesses; the transition away from the London Interbank Offered Rate toward new interest rate benchmarks; and our ability to manage the risks involved in the foregoing. 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, 2021, 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, *<u>https://www.tcbk.com/investor-relations</u>* 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.

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**TRICO BANCSHARES—CONDENSED CONSOLIDATED FINANCIAL DATA**

(Unaudited. Dollars in thousands, except share data)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Three months ended | Three months ended | Three months ended | Three months ended | Three months ended |
| | December 31,<br>2022 | September 30,<br>2022 | June 30,<br>2022 | March 31,<br>2022 | December 31,<br>2021 |
| **Revenue and Expense Data** |  |  |  |  |  |
| Interest income | $102989 | $96366 | $86955 | $69195 | $71024 |
| Interest expense | 4089 | 2260 | 1909 | 1271 | 1241 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest income | 98900 | 94106 | 85046 | 67924 | 69783 |
| Provision for credit losses | 4245 | 3795 | 2100 | 8330 | 980 |
| Noninterest income: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service charges and fees | 12343 | 12682 | 13044 | 11696 | 11277 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of investment securities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income | 3537 | 2958 | 3386 | 3400 | 5225 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noninterest income | 15880 | 15640 | 16430 | 15096 | 16502 |
| Noninterest expense (2): |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries and benefits | 36611 | 33528 | 34370 | 28597 | 27666 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Occupancy and equipment | 5482 | 5387 | 5449 | 4925 | 5011 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Data processing and network | 6236 | 5143 | 5468 | 5089 | 5444 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other noninterest expense | 11140 | 10407 | 10977 | 7836 | 8558 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noninterest expense | 59469 | 54465 | 56264 | 46447 | 46679 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total income before taxes | 51066 | 51486 | 43112 | 28243 | 38626 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for income taxes | 14723 | 14148 | 11748 | 7869 | 10404 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $36343 | $37338 | $31364 | $20374 | $28222 |
| **Share Data** |  |  |  |  |  |
| Basic earnings per share | $1.09 | $1.12 | $0.93 | $0.68 | $0.95 |
| Diluted earnings per share | $1.09 | $1.12 | $0.93 | $0.67 | $0.94 |
| Dividends per share | $0.30 | $0.30 | $0.25 | $0.25 | $0.25 |
| Book value per common share | $31.39 | $29.71 | $31.25 | $32.78 | $33.64 |
| Tangible book value per common share (1) | $21.76 | $19.92 | $21.41 | $23.04 | $25.80 |
| Shares outstanding | 33331513 | 33332189 | 33350974 | 33837935 | 29730424 |
| Weighted average shares | 33330029 | 33348322 | 33561389 | 30049919 | 29723791 |
| Weighted average diluted shares | 33467393 | 33463364 | 33705280 | 30201698 | 29870059 |
| **Credit Quality** |  |  |  |  |  |
| Allowance for credit losses to gross loans | 1.64% | 1.61% | 1.60% | 1.64% | 1.74% |
| Loans past due 30 days or more | $4947 | $6471 | $5920 | $8402 | $4332 |
| Total nonperforming loans | $21321 | $17471 | $11925 | $14088 | $30350 |
| Total nonperforming assets | $24760 | $20912 | $15304 | $16995 | $32944 |
| Loans charged-off | $174 | $267 | $401 | $743 | $197 |
| Loans recovered | $66 | $311 | $356 | $1174 | $552 |
| **Selected Financial Ratios** |  |  |  |  |  |
| Return on average total assets | 1.45% | 1.46% | 1.24% | 0.94% | 1.31% |
| Return on average equity | 14.19% | 13.78% | 11.53% | 8.19% | 11.20% |
| Average yield on loans, excluding PPP | 5.10% | 4.87% | 4.70% | 4.65% | 4.73% |
| Average yield on interest-earning assets | 4.52% | 4.12% | 3.76% | 3.46% | 3.56% |
| Average rate on interest-bearing deposits | 0.18% | 0.08% | 0.07% | 0.06% | 0.06% |
| Average cost of total deposits | 0.10% | 0.04% | 0.04% | 0.04% | 0.04% |
| Average cost of total deposits and other borrowings | 0.12% | 0.04% | 0.02% | 0.02% | 0.04% |
| Average rate on borrowings & subordinated debt | 4.07% | 3.60% | 3.12% | 2.27% | 1.98% |
| Average rate on interest-bearing liabilities | 0.32% | 0.17% | 0.15% | 0.11% | 0.11% |
| Net interest margin (fully tax-equivalent) (1) | 4.34% | 4.02% | 3.67% | 3.39% | 3.50% |
| Loans to deposits | 77.45% | 72.95% | 69.81% | 67.15% | 66.74% |
| Efficiency ratio | 51.81% | 49.63% | 55.45% | 55.95% | 54.10% |
| **Supplemental Loan Interest Income Data** |  |  |  |  |  |
| Discount accretion on acquired loans | $1751 | $714 | $1677 | $1323 | $1780 |
| All other loan interest income (excluding PPP) (1) | $79989 | $74929 | $67277 | $55325 | $54930 |
| Total loan interest income (excluding PPP) (1) | $81740 | $75643 | $68954 | $56648 | $56710 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Non-GAAP measure

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Inclusive of merger related expenses

------

**TRICO BANCSHARES—CONDENSED CONSOLIDATED FINANCIAL DATA**

(Unaudited. Dollars in thousands)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Balance Sheet Data** | December 31,<br>2022 | September 30,<br>2022 | June 30,<br>2022 | March 31,<br>2022 | December 31,<br>2021 |
| Cash and due from banks | $107230 | $246509 | $488868 | $1035683 | $768421 |
| Securities, available for sale, net | 2455036 | 2482857 | 2608771 | 2365708 | 2210876 |
| Securities, held to maturity, net | 160983 | 168038 | 176794 | 186748 | 199759 |
| Restricted equity securities | 17250 | 17250 | 17250 | 17250 | 17250 |
| Loans held for sale | 1846 | 247 | 1216 | 1030 | 3466 |
| Loans: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate | 4359083 | 4238930 | 4049893 | 3832974 | 3306054 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consumer | 1240743 | 1217297 | 1162989 | 1136712 | 1071551 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial and industrial | 569921 | 534960 | 507685 | 500882 | 259355 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction | 211560 | 243571 | 313646 | 303960 | 222281 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agriculture production | 61414 | 71599 | 71373 | 69339 | 50811 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Leases | 7726 | 7933 | 7835 | 8108 | 6572 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans, gross | 6450447 | 6314290 | 6113421 | 5851975 | 4916624 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for credit losses | (105680) | (101488) | (97944) | (96049) | (85376) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans, net | 6344767 | 6212802 | 6015477 | 5755926 | 4831248 |
| Premises and equipment | 72327 | 73266 | 73811 | 73692 | 78687 |
| Cash value of life insurance | 133742 | 132933 | 132857 | 132104 | 117857 |
| Accrued interest receivable | 31856 | 27070 | 25861 | 22769 | 19292 |
| Goodwill | 304442 | 307942 | 307942 | 307942 | 220872 |
| Other intangible assets | 16670 | 18372 | 20074 | 21776 | 12369 |
| Operating leases, right-of-use | 26862 | 26622 | 27154 | 28404 | 25665 |
| Other assets | 257975 | 262971 | 224536 | 169296 | 109025 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $9930986 | $9976879 | $10120611 | $10118328 | $8614787 |
| Deposits: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noninterest-bearing demand deposits | $3502095 | $3678202 | $3604237 | $3583269 | $2979882 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing demand deposits | 1718541 | 1749123 | 1796580 | 1788639 | 1568682 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Savings deposits | 2884378 | 2924674 | 3028787 | 2993873 | 2521011 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Time certificates | 223999 | 303770 | 327171 | 348696 | 297584 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 8329013 | 8655769 | 8756775 | 8714477 | 7367159 |
| Accrued interest payable | 1167 | 853 | 755 | 653 | 928 |
| Operating lease liability | 29004 | 28717 | 29283 | 30500 | 26280 |
| Other liabilities | 159741 | 153110 | 155529 | 126348 | 112070 |
| Other borrowings | 264605 | 47068 | 35089 | 36184 | 50087 |
| Junior subordinated debt | 101040 | 101024 | 101003 | 100984 | 58079 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 8884570 | 8986541 | 9078434 | 9009146 | 7614603 |
| Common stock | 697448 | 696348 | 696441 | 706672 | 532244 |
| Retained earnings | 542873 | 516699 | 491705 | 479868 | 466959 |
| Accum. other comprehensive income (loss) | (193905) | (222709) | (145969) | (77358) | 981 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity | $1046416 | $990338 | $1042177 | $1109182 | $1000184 |
| **Quarterly Average Balance Data** |  |  |  |  |  |
| Average loans, excluding PPP | $6357250 | $6162267 | $5890578 | $4937865 | $4759294 |
| Average interest-earning assets | $9076450 | $9320152 | $9330059 | $8153200 | $7947798 |
| Average total assets | $9932931 | $10131118 | $10121714 | $8778256 | $8546004 |
| Average deposits | $8545172 | $8752215 | $8743320 | $7521930 | $7304659 |
| Average borrowings and subordinated debt | $186957 | $139919 | $136244 | $105702 | $108671 |
| Average total equity | $1016468 | $1074776 | $1091454 | $1009224 | $999764 |
| **Capital Ratio Data** |  |  |  |  |  |
| Total risk-based capital ratio | 14.2% | 14.0% | 14.1% | 15.0% | 15.4% |
| Tier 1 capital ratio | 12.4% | 12.2% | 12.3% | 13.1% | 14.2% |
| Tier 1 common equity ratio | 11.7% | 11.4% | 11.5% | 12.3% | 13.2% |
| Tier 1 leverage ratio | 10.1% | 9.6% | 9.3% | 10.8% | 9.9% |
| Tangible capital ratio (1) | 7.6% | 6.9% | 7.3% | 8.0% | 9.2% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Non-GAAP measure

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**TRICO BANCSHARES—NON-GAAP FINANCIAL MEASURES** 

(Unaudited. Dollars in thousands)

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Three months ended | Three months ended | Three months ended | Twelve months ended | Twelve months ended |
| (dollars in thousands) | December 31,<br>2022 | September 30,<br>2022 | December 31,<br>2021 | December 31,<br>2022 | December 31,<br>2021 |
| **Net interest margin** |  |  |  |  |  |
| *Acquired loans discount accretion, net:* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount (included in interest income) | $1751 | $714 | $1780 | $5465 | $8091 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect on average loan yield | 0.11% | 0.05% | 0.15% | 0.09% | 0.17% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect on net interest margin (FTE) | 0.07% | 0.03% | 0.09% | 0.06% | 0.11% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest margin (FTE) | 4.34% | 4.02% | 3.50% | 3.88% | 3.58% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest margin less effect of acquired loan discount accretion (Non-GAAP) | 4.27% | 3.99% | 3.41% | 3.81% | 3.47% |
| *PPP loans yield, net:* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount (included in interest income) | $16 | $313 | $4094 | $2390 | $16643 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect on net interest margin (FTE) | n/m | 0.01% | 0.16% | 0.02% | 0.10% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest margin less effect of PPP loan yield (Non-GAAP) | 4.34% | 4.02% | 3.34% | 3.86% | 3.48% |
| *Acquired loan discount accretion and PPP loan yield, net:* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amount (included in interest income) | $1767 | $1027 | $5874 | $7855 | $24734 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect on net interest margin (FTE) | 0.07% | 0.04% | 0.25% | 0.08% | 0.21% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest margin less effect of acquired loan discount accretion and PPP yields, net (Non-GAAP) | 4.27% | 3.98% | 3.25% | 3.80% | 3.37% |

---

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Three months ended | Three months ended | Three months ended | Twelve months ended | Twelve months ended |
| (dollars in thousands) | December 31,<br>2022 | September 30,<br>2022 | December 31,<br>2021 | December 31,<br>2022 | December 31,<br>2021 |
| **Pre-tax pre-provision return on average assets or equity** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income (GAAP) | $36343 | $37338 | $28222 | $125419 | $117655 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exclude income tax expense | 14723 | 14148 | 10404 | 48488 | 46048 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exclude provision (benefit) for credit losses | 4245 | 3795 | 980 | 18470 | (6775) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income before income tax and provision expense (Non-GAAP) | $55311 | $55281 | $39606 | $192377 | $156928 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average assets (GAAP) | $9932931 | $10131118 | $8546004 | $9771601 | $8209673 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average equity (GAAP) | $1016468 | $1074776 | $999764 | $1074437 | $972214 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Return on average assets (GAAP) (annualized) | 1.45% | 1.46% | 1.31% | 1.28% | 1.43% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-tax pre-provision return on average assets (Non-GAAP) (annualized) | 2.21% | 2.16% | 1.84% | 1.97% | 1.91% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Return on average equity (GAAP) (annualized) | 14.19% | 13.78% | 11.20% | 11.67% | 12.10% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-tax pre-provision return on average equity (Non-GAAP) (annualized) | 21.59% | 20.41% | 15.72% | 17.90% | 16.14% |

---

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Three months ended | Three months ended | Three months ended | Twelve months ended | Twelve months ended |
| (dollars in thousands) | December 31,<br>2022 | September 30,<br>2022 | December 31,<br>2021 | December 31,<br>2022 | December 31,<br>2021 |
| **Return on tangible common equity** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average total shareholders' equity | $1016468 | $1074776 | $999764 | $1074437 | $972214 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exclude average goodwill | 306192 | 307942 | 220872 | 287904 | 220872 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exclude average other intangibles | 18 | 19433 | 12966 | 16 | 15131 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average tangible common equity (Non-GAAP) | $710258 | $747401 | $765926 | $786517 | $736211 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income (GAAP) | $36343 | $37338 | $28222 | $125419 | $117655 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exclude amortization of intangible assets, net of tax effect | 1199 | 1199 | 840 | 4461 | 3849 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tangible net income available to common shareholders (Non-GAAP) | $37542 | $38537 | $29062 | $129880 | $121504 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Return on average equity | 14.19% | 13.78% | 11.20% | 11.67% | 12.10% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Return on average tangible common equity (Non-GAAP) | 20.97% | 20.46% | 15.05% | 16.51% | 16.50% |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Three months ended | Three months ended | Three months ended | Three months ended | Three months ended |
| (dollars in thousands) | December 31,<br>2022 | September 30,<br>2022 | June 30,<br>2022 | March 31,<br>2022 | December 31,<br>2021 |
| **Tangible shareholders' equity to tangible assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders' equity (GAAP) | $1046416 | $990338 | $1042177 | $1109182 | $1000184 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exclude goodwill and other intangible assets, net | 321112 | 326314 | 328016 | 329718 | 233241 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tangible shareholders' equity (Non-GAAP) | $725304 | $664024 | $714161 | $779464 | $766943 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets (GAAP) | $9930986 | $9976879 | $10120611 | $10118328 | $8614787 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exclude goodwill and other intangible assets, net | 321112 | 326314 | 328016 | 329718 | 233241 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total tangible assets (Non-GAAP) | $9609874 | $9650565 | $9792595 | $9788610 | $8381546 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders' equity to total assets (GAAP) | 10.54% | 9.93% | 10.30% | 10.96% | 11.61% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tangible shareholders' equity to tangible assets (Non-GAAP) | 7.55% | 6.88% | 7.29% | 7.96% | 9.15% |

---

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Three months ended | Three months ended | Three months ended | Three months ended | Three months ended |
| (dollars in thousands) | December 31,<br>2022 | September 30,<br>2022 | June 30,<br>2022 | March 31,<br>2022 | December 31,<br>2021 |
| **Tangible common shareholders' equity per share** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tangible s/h equity (Non-GAAP) | $725304 | $664024 | $714161 | $779464 | $766943 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common shares outstanding at end of period | 33331513 | 33332189 | 33350974 | 33837935 | 29730424 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common s/h equity (book value) per share (GAAP) | $31.39 | $29.71 | $31.25 | $32.78 | $33.64 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tangible common shareholders' equity (tangible book value) per share (Non-GAAP) | $21.76 | $19.92 | $21.41 | $23.04 | $25.80 |

---

\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*

## Exhibit 99.2

![](a2022q4investorpresentat001.jpg)

Investor Presentation Fourth Quarter 2022 Richard P. Smith, President & Chief Executive Officer John S. Fleshood, EVP & Chief Operating Officer Peter G. Wiese, EVP & Chief Financial Officer Exhibit 99.2

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![](a2022q4investorpresentat002.jpg)

Safe Harbor Statement Investor Presentation \| Fourth Quarter 20222 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. There can be no assurance that future developments affecting us will be the same as those anticipated by management. 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 strength of the United States economy in general and the strength of the local economies in which we conduct operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market and monetary fluctuations impacts on the Company's business condition and financial operating results; the impact of changes in financial services industry policies, laws and regulations; regulatory restrictions on our ability to successfully market and price our products to consumers; technological changes; weather, natural disasters and other catastrophic events that may or may not be caused by climate change and their effects on economic and business environments in which the Company operates; the continuing adverse impact on the U.S. economy, including the markets in which we operate due to the COVID-19 global pandemic; the impact of a slowing U.S. economy and increased unemployment on the performance of our loan portfolio, the market value of our investment securities, the availability 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, terrorism or geopolitical events; 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 mergers, acquisitions or dispositions, identify and complete favorable transactions in the future, and/or realize the contemplated financial business benefits associated with any such activities; 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 lending 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 timing and effects of the implementation of the 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 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; possible other-than-temporary impairment of securities held by us due to changes in credit quality or rates; 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; our noninterest expense and the efficiency ratio; competition and innovation with respect to financial products and services by banks, financial institutions and non- traditional providers including retail businesses and technology companies; the challenges of attracting, integrating and retaining key employees; the costs and effects of litigation and of unexpected or adverse outcomes in such litigation; 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 such incidents; increased data security risks due to work from home arrangements; failure to safeguard personal information; changes to U.S. tax policies, including our effective income tax rate; the effect of a fall in stock market prices on our brokerage and wealth management businesses; the transition away from the London Interbank Offered Rate toward new interest rate benchmarks; and our ability to manage the risks involved in the foregoing. 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, 2021, 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.

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![](a2022q4investorpresentat003.jpg)

Investor Presentation \| Fourth Quarter 20223 Most Recent Quarter Recap Company Overview Lending Overview Deposit Overview Financials Agenda

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![](a2022q4investorpresentat004.jpg)

Most Recent Quarter Highlights Investor Presentation \| Fourth Quarter 20224 Operating Leverage and Profitability • Pre-tax pre-provision ROAA and ROAE were 2.21% and 21.59%, respectively, for the quarter ended December 31, 2022, and 1.84% and 15.72%, respectively, for the same quarter in the prior year • Our efficiency ratio was 51.8% for the quarter ended December 31, 2022, compared to 49.6% and 54.1% for the quarters ended September 30, 2022 and December 31, 2021, respectively Balance Sheet Management • Organic net loan growth was $136.5 million, a 8.6% annualized increase over the trailing quarter, loan growth over the trailing twelve months was $841.4 million or 17.3% • Earning asset mix shift and liquidity management have been critical to our revenue generation and navigation of our total asset size which approximates $10 billion • Loan to deposit ratio has grown to 77.4% at December 31, 2022 compared to 66.7% a year ago Net Interest Income and Margin • Net interest margin (FTE) of 4.34%, compared to 4.02% in the prior quarter, and 3.50% in December 31, 2021, was influenced by the rising rate environment and earning asset mix shift • The loan portfolio yields, excluding PPP, increased 23 basis points to 5.10% during the quarter • Net interest margin, less the effect of acquired loan discount accretion and PPP yields (non-GAAP), on a tax equivalent basis was 4.27%, an increase of 29 basis points from 3.98% in the trailing quarter Credit Quality • The allowance for credit losses to total loans was 1.64% as of December 31, 2022, compared to 1.61% as of September 30, 2022, and 1.74% as of December 31, 2021 • Classified loans to total loans was 1.11% at December 31, 2022 as compared to 1.06% a year ago • Loans past due 30+ days to total loans was 0.08% at quarter ended as compared to 0.09% a year ago Diverse Deposit Base • Non-interest-bearing deposits comprise 42.0% of total deposits • Deposit betas remain low with the cost of total average deposits increasing only 6 basis points to 0.10% Capital Strategies • Quarterly dividend of $0.30 or $1.20 annually • Share repurchase program with demonstrated utilization will be opportunistically maintained • Tangible capital ratio of 7.6% at December 31, 2022, an increase from 6.9% in the trailing quarter • Strength in core earnings is key to self-financed and self-funded growth

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Company Overview Investor Presentation \| Fourth Quarter 20225 Nasdaq: TCBK Headquarters: Chico, California Stock Price\*: $50.99 Market Cap.: $1.70 Billion Asset Size: $9.93 Billion Loans: $6.45 Billion Deposits: $8.33 Billion Bank Branches: 70 ATMs: 88 Bank ATMs, with access to over 37,000 network ATMs Market Area: TriCo currently serves 31 counties throughout California. \* As of close of business December 30, 2022

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![](a2022q4investorpresentat006.jpg)

Executive Team Investor Presentation \| Fourth Quarter 20226 Left to right: Judi Giem, SVP & Chief Human Resources Officer Peter Wiese, EVP & Chief Financial Officer Dan Bailey, EVP & Chief Banking Officer Rick Smith, President & Chief Executive Officer John Fleshood, EVP & Chief Operating Officer Craig Carney, EVP & Chief Credit Officer Greg Gehlmann, SVP & General Counsel

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![](a2022q4investorpresentat007.jpg)

Key Executive Management Themes and Topics 7 "Top of Mind for Today and Tomorrow" • Capital and Liquidity Planning – the Ability to Remain in a Position of Strength • Maintaining a Vigilant and Proactive Credit Perspective – When and If Exposures May be Observed • The Timing, Pace and Extent of Rate Changes – Driving Alpha and Protecting Beta While Shifts in Money Supply Occur • Talent Acquisition - Succession Planning in Selected Areas • Scaling and Leverage – Meticulously Patient in Finding the Right Partner at the Right Time to Cross $10 Billion in Total Assets • Growing Global Economic and Political Uncertainty - Domestic Implications • Regulatory Focus and Climate – Compliance, ESG, and M&A Effects Investor Presentation \| Fourth Quarter 2022

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![](a2022q4investorpresentat008.jpg)

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 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 Net Income ($MM) $13.9 $15.0 $16.2 $23.2 $22.7 $23.1 $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 Qtrly Diluted EPS $0.60 $0.65 $0.53 $0.76 $0.74 $0.75 $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 $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 ar ni n gs (in M ill io ns) Positive Earnings Track Record Investor Presentation \| Fourth Quarter 20228 July 2018 Acquired FNB Bancorp ($1.2B assets) March 2022 Acquired Valley Republic Bancorp ($1.4B assets)

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![](a2022q4investorpresentat009.jpg)

31% 37% 27% 27% 41% 25% 29% 2016 2017 2018 2019 2020 2021 2022 $0.46 $0.52 $0.60 $0.74 $0.53 $1.13 $0.67 $0.41 $0.58 $0.65 $0.75 $0.25 $0.95 $0.93 $0.53 $0.51 $0.53 $0.76 $0.59 $0.92 $1.12 $0.54 $0.76 $0.75 $0.79 $0.94 $1.09 $1.94 $1.74 $2.54 $3.00 $2.16 $3.94 $3.83 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 2016 2017 2018 2019 2020 2021 2022 Q1 Q2 Q3 Q4 $0.15 $0.15 $0.17 $0.19 $0.22 $0.25 $0.25 $0.15 $0.17 $0.17 $0.19 $0.22 $0.25 $0.25 $0.15 $0.17 $0.17 $0.22 $0.22 $0.25 $0.30 $0.15 $0.17 $0.19 $0.22 $0.22 $0.25 $0.30 $0.60 $0.66 $0.70 $0.82 $0.88 $1.00 $1.10 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 2016 2017 2018 2019 2020 2021 2022 Q1 Q2 Q3 Q4 Shareholder Returns Investor Presentation \| Fourth Quarter 20229 Dividends per Share: 10.6% CAGR\* Dividends as % of Earnings Return on Avg. Shareholder Equity Diluted EPS 9.47% 8.10% 10.75% 10.49% 7.18% 12.10% 11.67% 2016 2017 2018 2019 2020 2021 2022

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![](a2022q4investorpresentat010.jpg)

Consistent Growth Investor Presentation \| Fourth Quarter 202210 CAGR 5 yrs. 10 yrs. Total Assets 15.9% 14.4% Organic Growth and Disciplined Acquisitions  Asset Dollars in Billions.

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![](a2022q4investorpresentat011.jpg)

Investor Presentation \| Fourth Quarter 2022 Loans and Credit Quality 1111

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![](a2022q4investorpresentat012.jpg)

Consistent Loan Growth Investor Presentation \| Fourth Quarter 202212  Q1 2021 increase includes $98MM Jumbo Mortgage pool purchase  End of period balances are presented net of fees and include LHFS. Yields based on average balance and annualized quarterly interest income.  Acquired VRB Loans of $795MM upon 3/25/2022 with a WAR of 4.31%. VRB total included $21MM of PPP loans. $4,022 $4,111 $4,381 $4,386 $4,407 $4,443 $4,610 $4,711 $4,739 $4,859 $5,796 $6,097 $6,313 $6,451 5.24% 5.44% 5.23% 5.05% 4.78% 5.09% 5.15% 4.86% 4.92% 4.96% 4.69% 4.73% 4.88% 5.10% 3.50% 4.50% 5.50% 6.50% $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 2018 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1-2022 Q2-2022 Q3-2022 Q3-2022 Non-PPP PPP Loans Loan Yield Loan Yield Excl PPP

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$144 $200 $229 $349 $178 $199 $165 $250 $464 $285 $303 $412 $396 $473 $446 $250 -$118 -$147 -$139 -$210 -$118 -$139 -$131 -$166 -$241 -$192 -$243 -$250 -$225 -$205 -$270 -$110 -$21 $14 -$15 -$14 $6 -$56 -$20 -$47 -$59 $6 -$33 -$47 $4 $33 $42 -$4 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Origination Payoffs Balance Change net of Originations and Payoffs Gross Production vs. Payoff Investor Presentation \| Fourth Quarter 202213  Outstanding Principal in Millions, excludes PPP  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. In addition to the nearly $0.8 billion in non-PPP loan originations in 2020, TCBK originated over $0.4 billion in PPP loans. TCBK originated over $0.9 billion in loans in 2019, while facing headwinds of payoffs in excess of $0.6 billion. Originations and net loan growth in 2022 were supportive of the positive mix shift in earning assets and facilitated both NII and NIM expansion.

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Diversified Loan Portfolio Investor Presentation \| Fourth Quarter 202214  Dollars in millions, Net Book Value at period end, excludes LHFS;  Auto & other includes Leases; PPP Loans of $1 mln 4Q-2022 and $61.1 mln 4Q-2021. Commercial & Industrial includes six Municipality Loans for $21.3 mln. CRE Non-Owner Occupied 34% CRE-Owner Occupied 15%Multifamily 15% SFR 1-4 Term 12% Commercial & Industrial 9% SFR HELOC and Junior Liens 6% Construction 3% Agriculture & Farmland 5% Auto & Other 1% $1,896 $1,603 $860 $706 $927 $823 $765 $670 $415 $255 $389 $337 $183 $223 $238 $223 $57 $65 $257 $121 $17 $27 $155 $4 $28 $103 4Q-2022 4Q-2021 4Q-2022 4Q-2021 4Q-2022 4Q-2021 4Q-2022 4Q-2021 4Q-2022 4Q-2021 4Q-2022 4Q-2021 4Q-2022 4Q-2021 4Q-2022 4Q-2021 4Q-2022 4Q-2021 C R E N o n - O w n e r O cc u p ie d C R E - O w n e r O cc u p ie d M u lti fa m ily S F R 1 -4 T e rm C o m m e rc ia l & In d u st ri al 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 TCBK VRB

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70% 50% 78% 63% 88% 72% 39% 50% 28% 47% 20% 37% 12% 24% 60% 43% 2% 3% 2% 0% 0% 4% 1% 7% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Retail Building Office Building Hotel/Motel Light Industrial Self Storage Other Multifamily CRE Owner Occupied <= 60% > 60% - 75% > 75% CRE Collateral Values Investor Presentation \| Fourth Quarter 202215 Distribution by LTV (1) LTV Range (1) LTV as of most recent origination or renewal date. CRE Non Owner Occupied by Collateral Type

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$2,172 $1,619 $950 $828 $391 $335 $565 $194 $990 $711 $794 $672 $218 $225 $346 $224 $54 $63 $150 $170 $61 $44 $631 $531 $593 $345 $59 $31 $312 $211 $235 $69 $8 $9 4Q-2022 4Q-2021 4Q-2022 4Q-2021 4Q-2022 4Q-2021 4Q-2022 4Q-2021 4Q-2022 4Q-2021 4Q-2022 4Q-2021 4Q-2022 4Q-2021 4Q-2022 4Q-2021 4Q-2022 4Q-2021 CRE Non-Owner Occupied Multifamily SFR HELOC and Junior Liens Commercial & Industrial CRE-Owner Occupied SFR 1-4 Term Construction Agriculture & Farmland Auto & Other Outstanding Principal ($MM) Unfunded Commitment ($MM) Unfunded Loan Commitments Investor Presentation \| Fourth Quarter 202216 HELOCs – by vintage, with weighted avg. coupon (5.67% total WAC)  Outstanding Principal and Commitments exclude unearned fees and discounts/premiums, Leases, DDA Overdraft, and Credit Cards  PPP Excluded from C&I includes for $1 million and $63 million in Outstanding Principal as of Q4 2022 and Q4 2021, respectively. 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% $0 $25 $50 $75 $100 $125 $150 $175 $200 $225 $250 $275 20222021202020192018201720162015201420132012201120102009<2009 Private Balance (MM) Unfunded (MM) WA Rate 4.66%4.54% 6.23% 6.74% 7.35%7.03%6.78%6.83%6.76% 7.43% 6.84% 7.36% 6.35% 7.58%7.45%

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C&I Utilization Investor Presentation \| Fourth Quarter 202217  Excludes PPP loans; Outstanding Principal excludes unearned fees and discounts/premiums ($ millions) • C&I utilization is expected to grow incrementally in 2023 • Paired with treasury management services, C&I customers will be a continued source of noninterest bearing deposits. C&I Utilization by NAICS Industry: 4Q-2022 $262 $208 $205 $197 $187 $206 $186 $191 $448 $476 $509 $544 $235 $265 $273 $372 $384 $360 $353 $339 $552 $547 $603 $593 52.7% 44.0% 42.9% 34.5% 32.7% 36.4% 34.5% 36.0% 44.8% 46.5% 45.8% 47.8% 0% 10% 20% 30% 40% 50% 60% $0 $200 $400 $600 $800 $1,000 $1,200 1Q-2020 2Q-2020 3Q-2020 4Q-2020 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 3Q-2022 4Q-2022 Outstanding Principal ($MM) Unfunded Commitment Utilization Benefited by VRB merger $186 $50 $1 $71 $53 $51 $12 $27 $13 $80 $118 $86 $123 $39 $43 $37 $45 $13 $21 $68 61% 37% 0% 65% 55% 58% 20% 68% 39% 54% 0% 2000% 4000% 6000% 8000% 10000% 12000% 14000% 16000% 18000% 20000% Oil & Gas Extraction Construction Consumer Wholesale Real Estate Finance and Insurance Healthcare Trans and Warehouse Retail Trade Other (13 Categories) Outstanding (mln) Unfunded (mln)

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Loan Yield Composition Investor Presentation \| Fourth Quarter 202218  Dollars in millions, excludes PPP as well as unearned fees and accretion/amortization therein  Wtd Avg Rate (weighted average rate) as of 12/31/2022 and based upon outstanding principal; Next Reprice signifies either the next scheduled reprice date or maturity. 98% of Floating benchmarked to Prime Predominantly benchmarked to 5 Year Treasury 57% Adjustable + Floating $875 $238 $256 $359 $530 $678 $737 8.14% 5.29% 4.95% 4.36% 4.22% 4.68% 4.15% 7.44% 6.94% 6.84% 7.09% 6.79% 6.93% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% - 100 200 300 400 500 600 700 800 900 1,000 Monthly (Floating) < 1 Year 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years > 5 Years Adjustable Loans, Principal Outstanding ($MM) Adj Wtd Avg Rate Adj Wtd Avg Rate if Repriced 12/31/2022 Fixed 43% Adjustable 43% Floating 14%

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Allowance for Credit Losses Investor Presentation \| Fourth Quarter 202219 Drivers of Change under CECL  Loan growth of $136 million Q4 (excluding PPP)  Continued low loss experience and improvement in Unemployment rate offset by increases in factors for Corp BBB Yield and Global Economic Uncertainty  Gross charge offs $0.174 million  Gross recoveries $0.066 million 1.61% of Total Loans 1.64% of Total Loans  Increase in Criticized & Classified loans of $18 million  Increase driven by $0.6 million in specific reserves and volume growth Scaled to reflect $90MM

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Allowance for Credit Losses Investor Presentation \| Fourth Quarter 202220 Allocation of Allowance by Segment  Municipal loans included in Commercial and industrial segment within the presented table

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Risk Grade Migration Investor Presentation \| Fourth Quarter 202221  Zero balance in Doubtful and Loss 89.0%88.5%87.8%87.6%89.6%87.2% 7.9%8.6%9.7%9.5%7.8% 9.3% 2.0%2.0%1.8%2.1%1.6%2.5% 1.1%0.9%0.8%0.8%1.1%1.0% 4Q-20223Q-20222Q-20221Q-20224Q-20213Q-2021 Pass Watch Special Mention Substandard

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Asset Quality Investor Presentation \| Fourth Quarter 202222  Peer group consists of 99 closest peers in terms of asset size, range $6.0-13.7 Billion, source: BankRegData.com  NPA and NPL ratios displayed are net of guarantees Coverage Ratio: Allowance as % of Non-Performing Loans  On a year-to-date basis net recoveries of $322,000 and have been realized.  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 193% 343% 385% 395% 342% 297% 263% 293% 281% 690% 831% 586% 501% 15 6% 13 9% 20 2% 19 1% 17 9% 18 7% 19 4% 19 7% 21 0% 21 7% 30 9% 32 2% 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 TCBK Peers 0.28% 0.30% 0.31% 0.33% 0.38% 0.38% 0.42% 0.37% 0.38% 0.17% 0.15% 0.21% 0.25% 0.47% 0.73% 0.53% 0.58% 0.75% 0.73% 0.68% 0.64% 0.54% 0.55% 0.51% 0.50% 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 TCBK Peers

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Investor Presentation \| Fourth Quarter 2022 Deposits 2323

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Deposits: Strength in Funding Investor Presentation \| Fourth Quarter 202224 Total Deposits = $8.33 billion 95.8% of Funding Liabilities Liability Mix 12/31/2022  Peer group consists of 99 closest peers in terms of asset size, range $4.7-11.5 Billion; source: BankRegData.com  Net Loans includes LHFS and Allowance for Credit Loss; Core Deposits = Total Deposits less CDs > 250k and Brokered Deposits (0.03% Funding Cost) Non Interest- bearing Demand Deposits, 39.4% Interest-bearing Demand & Savings Deposits, 51.8% Time Deposits, 2.5% Borrowings & Subordinated Debt, 4.1% Other liabilities, 2.1% 8 1 .6 8 1 .6 7 6 .9 7 5 .9 7 2 .6 7 1 .8 7 0 .1 6 6 .9 6 6 .0 6 6 .4 6 9 .1 7 1 .4 7 5 .8 0 20 40 60 80 100 120 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 Loans to Core Deposits (%) TCBK Peers 3 4 .1 3 4 .9 3 9 .8 3 9 .7 3 9 .7 4 0 .3 4 0 .7 4 0 .7 4 0 .4 4 1 .1 4 1 .2 4 2 .5 4 2 .0 0 10 20 30 40 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 Non Interest-bearing Deposits as % of Total Deposits TCBK Peers

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Deposits: Strength in Cost of Funds Investor Presentation \| Fourth Quarter 202225  Balances presented in millions, end of period  Relationship focused market share growth.  Continued best in class total deposit Beta; (less than 1.5% rate rise cycle to date) $441 $419 $399 $376 $345 $328 $324 $327 $298 $349 $327 $304 $224 $3,094 $3,101 $3,363 $3,446 $3,580 $3,769 $3,824 $3,967 $4,090 $4,783 $4,825 $4,674 $4,603 $1,833 $1,883 $2,487 $2,518 $2,582 $2,767 $2,844 $2,943 $2,980 $3,583 $3,604 $3,678 $3,502 $5,367 $5,403 $6,248 $6,341 $6,506 $6,863 $6,992 $7,237 $7,367 $8,714 $8,757 $8,656 $8,329 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 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

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Financials 2626 Investor Presentation \| Fourth Quarter 2022

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Net Interest Income (NII) and Margin (NIM) Investor Presentation \| Fourth Quarter 202227 3Q22 to 4Q22 Reported Net Interest Income (NII) & NIM Walk NII $ in millions, NIM change in bps, all full taxable equivalent (FTE) NII NIM 3Q22 $94.5 4.02% Market rate changes - earning assets 7.2 48 Loan balances / mix 2.2 15 Market rate changes - interest bearing liabilities (1.4) (10) Interest-bearing cash volume (1.3) (9) Securities portfolio balances / mix (1.1) (7) Borrowing volumes (0.4) (3) Loan deferred fees (0.4) (2) 4Q22 $99.3 4.34% $70.1 $68.2 $85.4 $94.5 $99.3 3.50% 3.39% 3.67% 4.02% 4.34% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00% - 20.0 40.0 60.0 80.0 100.0 120.0 4Q21 1Q22 2Q22 3Q22 4Q22 NII (FTE) NIM (FTE)

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1.02% 0.89% 1.24% 1.43% 0.91% 1.43% 1.28% 2016 2017 2018 2019 2020 2021 2022 1.60% 1.70% 1.73% 1.94% 1.83% 1.91% 1.97% 2016 2017 2018 2019 2020 2021 2022 68.7% 65.4% 63.7% 59.7% 58.4% 53.2% 53.0% 2016 2017 2018 2019 2020 2021 2022 4.23% 4.22% 4.30% 4.47% 3.96% 3.58% 3.88% 2016 2017 2018 2019 2020 2021 2022 Current Operating Metrics Investor Presentation \| Fourth Quarter 202228 Net Interest Margin (FTE) PPNR as % of Average Assets Efficiency Ratio ROAA

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9.1% 9.3% 9.5% 10.6% 9.3% 9.2% 7.6% 2016 2017 2018 2019 2020 2021 2022 14.8% 14.1% 14.4% 15.1% 15.2% 15.4% 14.2% 2016 2017 2018 2019 2020 2021 2022 12.2% 11.7% 12.5% 13.3% 12.9% 13.2% 11.7% 2016 2017 2018 2019 2020 2021 2022 13.7% 13.2% 13.7% 14.4% 14.0% 14.2% 12.4% 2016 2017 2018 2019 2020 2021 2022 Well Capitalized Investor Presentation \| Fourth Quarter 202229 Tier 1 Capital Ratio Total Risk Based Capital CET1 Ratio Tangible Capital Ratio  2022 values at quarter ended 12/31/2022

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XYZ Investor Presentation \| Fourth Quarter 202230 Pending update – no material change to format

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