TriCo Bancshares

03/02/2026 | Press release | Distributed by Public on 03/02/2026 14:45

Annual Report for Fiscal Year Ending December 31, 2025 (Form 10-K)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Introduction
The following discussion and analysis is designed to provide a better understanding of the significant changes and trends related to the Company and the Bank's financial condition, operating results, asset and liability management, liquidity and capital resources and should be read in conjunction with the consolidated financial statements of the Company and the related notes at Part II, Item 8 of this report.
Financial Overview
In 2025, the Company reported net income of $121.6 million, a $6.7 million or 5.8% increase from the prior year. Earnings per share on a diluted basis for the year were $3.70, up 6.9% from the prior year. The current year net income was impacted by an increase in net interest income primarily associated with decreased interest expense and partially offset by an increase in provision for loan losses. In 2025, total interest expense was reported at $119.7 million, an decrease of $15.5 million or 11.4% from the prior year.
Net interest income on a fully tax equivalent (FTE) basis, a non-GAAP financial measure, was $351.9 million, an increase of $19.4 million, or 5.8%, from 2024. The increase in FTE net interest income reflects the $75.8 million, or 0.8%, increase in average earning assets and an 18 basis point increase in the FTE net interest margin to 3.89%. Average earning asset declines included a $226.1 million or 10.5% decrease in average securities, partially offset by an $166.3 million, or 2.5% increase in average loans and leases. The decrease in average securities was driven by the redeployment of liquidity from prepayments, maturities and sales into the pay down of borrowings and loan growth during 2025. The net interest margin expansion was driven by the declining rate environment and a liability sensitive balance sheet, resulting in a decrease in the cost of funds from both deposits and borrowings. This decrease in interest expense was supported by improved average balances on loans, flat yields on earnings assets and to a greater extent, by the continued balance sheet mix shift where liquidity from deposit growth and investment security principal repayments were utilized to pay down borrowings. Total average interest-bearing deposits was $5.7 billion and $5.4 billion during 2025 and 2024, respectively, while average other borrowings totaled $35.6 million and $294.3 million, respectively, during the same periods.
The provision for credit losses increased $5.4 million to $12.1 million, primarily due to growth in loan volume during 2025 and increased charge-offs, relative to the 2024 period with muted loan growth and less volatility within collateral values. The allowance for credit losses (ACL) was $125.8 million, or 1.77% of total loans and leases, at December 31, 2025, compared to $125.4 million, or 1.85% of total loans and leases, at December 31, 2024.
Noninterest income was $68.3 million, up $3.9 million, or 6.1%, from the prior year, while noninterest expenses of $241.0 million was up $6.9 million or 2.9%, from the prior year. The year over year changes in noninterest income reflected improved earnings on deposit accounts and other service fees, coupled with elevated earnings from asset management from continued growth in assets under management. The increase in noninterest expense meanwhile as compared to the trailing year is attributed primarily to a combination of routine merit increases, increased incentive compensation from elevated levels of both loan and deposit production, and targeted strategic hiring.
The tangible common equity to tangible assets ratio, a non-GAAP financial measure, was 10.71% at December 31, 2025, up 99 basis points from December 31, 2024, primarily due to an increase in tangible common equity related to the retention of 2025 earnings and a reduction in accumulated other comprehensive loss.
30 TriCo Bancshares 2025 10-K
TRICO BANCSHARES
Financial Summary
(In thousands, except per share amounts; unaudited)
Year ended December 31, 2025 2024 2023
Interest income $ 470,572 $ 466,638 $ 438,354
Interest expense (119,729) (135,204) (81,677)
Net interest income 350,843 331,434 356,677
Provision for credit losses (12,063) (6,632) (23,990)
Noninterest income 68,338 64,407 61,400
Noninterest expense (240,959) (234,105) (233,182)
Income before income taxes 166,159 155,104 160,905
Provision for income taxes (44,601) (40,236) (43,515)
Net income $ 121,558 $ 114,868 $ 117,390
Share Data
Earnings per share:
Basic $ 3.72 $ 3.47 $ 3.53
Diluted $ 3.70 $ 3.46 $ 3.52
Per share:
Dividends paid $ 1.38 $ 1.32 $ 1.20
Book value at period end $ 41.07 $ 37.03 $ 34.86
Tangible book value at period end (2) $ 31.52 $ 27.60 $ 25.39
Average common shares outstanding 32,673 33,088 33,261
Average diluted common shares outstanding 32,855 33,230 33,355
Shares outstanding at period end 32,335 32,970 33,268
Financial Ratios
During the period:
Return on average assets 1.23 % 1.18 % 1.19 %
Return on average equity 9.45 % 9.57 % 10.65 %
Net interest margin(1)
3.89 % 3.71 % 3.96 %
Efficiency ratio 57.48 % 59.14 % 55.77 %
Average equity to average assets 13.06 % 12.30 % 11.17 %
Dividend payout ratio 37.04 % 38.00 % 33.99 %
At period end:
Equity to assets 13.52 % 12.62 % 11.70 %
Total capital to risk-weighted assets 15.05 % 15.71 % 14.73 %
Balance Sheet Data
Total investments $ 1,842,417 $ 2,036,610 $ 2,305,882
Total loans 7,111,087 6,768,523 6,794,470
Total assets 9,822,063 9,673,728 9,910,089
Total non-interest bearing deposits 2,594,032 2,548,613 2,722,689
Total deposits 8,263,901 8,087,576 7,834,038
Total other borrowings 11,713 89,610 632,582
Total junior subordinated debt 41,238 101,191 101,099
Total shareholders' equity 1,328,001 1,220,907 1,159,682
Total tangible equity (2)
$ 1,019,088 $ 910,033 $ 844,688
(1)Fully taxable equivalent (FTE)
(2)Tangible equity is calculated by subtracting Goodwill and Other intangible assets from total shareholders' equity. Management believes that tangible equity is meaningful because it is a measure that the Company and investors commonly use to assess capital adequacy. Tangible book value is calculated by dividing tangible equity by shares outstanding at period end. See tables below for further details.
As TriCo Bancshares has not commenced any business operations independent of the Bank, the following discussion pertains primarily to the Bank. Average balances, including such balances used in calculating certain financial ratios, are generally comprised of average daily balances for the Company. Within Management's Discussion and Analysis of Financial Condition and Results of Operations, interest income and net interest income may be presented on a fully tax-equivalent (FTE) basis. The presentation of interest income and net interest income on a FTE basis is a common practice within the banking industry. Interest income and net interest income are shown on a non-FTE basis within Part II, Item 7 and Item 8 of this report, and a reconciliation of the FTE and non-FTE presentations is provided below in the discussion of net interest income.
In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this 10-K contains certain non-GAAP financial measures. Management has presented these non-GAAP financial measures because it believes that they provide useful and comparative information to assess trends in the Company's core operations reflected in the periods presented
31 TriCo Bancshares 2025 10-K
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:
Twelve months ended
(dollars in thousands) December 31,
2025 		December 31,
2024
Net interest margin
Acquired loans discount accretion, net:
Amount (included in interest income) $5,153 $4,329
Effect on average loan yield 0.08 % 0.07 %
Effect on net interest margin (FTE) 0.06 % 0.05 %
Net interest margin (FTE) 3.89 % 3.71 %
Net interest margin less effect of acquired loan discount accretion (Non-GAAP) 3.83 % 3.66 %
Twelve months ended
(dollars in thousands) December 31,
2025 		December 31,
2024
Pre-tax pre-provision return on average assets or equity
Net income (GAAP) $121,558 $114,868
Exclude provision for income taxes 44,601 40,236
Exclude provision for credit losses 12,063 6,632
Net income before income tax and provision expense (Non-GAAP) $178,222 $161,736
Average assets (GAAP) $9,854,786 $9,757,326
Average equity (GAAP) $1,286,959 $1,200,140
Return on average assets (GAAP) 1.23 % 1.18 %
Pre-tax pre-provision return on average assets (Non-GAAP) 1.81 % 1.66 %
Return on average equity (GAAP) 9.45 % 9.57 %
Pre-tax pre-provision return on average equity (Non-GAAP) 13.85 % 13.48 %
Twelve months ended
(dollars in thousands) December 31,
2025 		December 31,
2024
Return on tangible common equity
Average total shareholders' equity $1,286,959 $1,200,140
Exclude average goodwill 304,442 304,442
Exclude average other intangibles 5,498 8,592
Average tangible common equity (Non-GAAP) $977,019 $887,106
Net income (GAAP) $121,558 $114,868
Exclude amortization of intangible assets, net of tax effect 1,381 2,900
Tangible net income available to common shareholders (Non-GAAP) $122,939 $117,768
Return on average equity 9.45 % 9.57 %
Return on average tangible common equity (Non-GAAP) 12.58 % 13.28 %
32 TriCo Bancshares 2025 10-K
As of
(dollars in thousands) December 31,
2025 		December 31,
2024
Tangible shareholders' equity to tangible assets
Shareholders' equity (GAAP) $1,328,001 $1,220,907
Exclude goodwill and other intangible assets, net 308,913 310,874
Tangible shareholders' equity (Non-GAAP) $1,019,088 $910,033
Total assets (GAAP) $9,822,063 $9,673,728
Exclude goodwill and other intangible assets, net 308,913 310,874
Total tangible assets (Non-GAAP) $9,513,150 $9,362,854
Shareholders' equity to total assets (GAAP) 13.52 % 12.62 %
Tangible shareholders' equity to tangible assets (Non-GAAP) 10.71 % 9.72 %
As of
(dollars in thousands) December 31,
2025 		December 31,
2024
Tangible common shareholders' equity per share
Tangible shareholders' equity (Non-GAAP) $1,019,088 $910,033
Common shares outstanding at end of period 32,334,974 32,970,425
Common shareholders' equity (book value) per share (GAAP) $41.07 $37.03
Tangible common shareholders' equity (tangible book value) per share (Non-GAAP) $31.52 $27.60
Critical Accounting Policies and Estimates
In preparing the consolidated financial statements in accordance with generally accepted accounting principles in the United States of America (GAAP), management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ significantly from those estimates. Our most significant accounting policies and estimates and their related application are discussed below.
Allowance for Credit Losses
Our ACL represents our current estimate of the lifetime credit losses expected from our loan and lease portfolio and our unfunded lending commitments. Management uses models that employ assumptions about current and future economic conditions throughout the contractual life of our loan portfolio. As part of our model risk oversight, we perform ongoing monitoring of model performance to assess modeling approaches and identify potential model enhancements, which may result in updates to our statistically based models from time-to-time. The impact from any refinement of estimates or changes to assumptions was insignificant to the financial statements during the current period. Ongoing oversight efforts include monitoring: CECL model outputs, loan portfolio risk ratings, economic conditions, loan concentrations and growth rates, past-due and non-performing trends, specific reserves for problem loans, and historical charge-off and recovery experience.
One of the key assumptions requiring significant judgment in the process is estimating the Company's ACL relates to macroeconomic forecasts that are incorporated into the loss models. As all economic outlooks are inherently uncertain, the Company utilizes various data points to better inform management's estimation of expected credit losses given observable and forecast changes in the economic environment and market conditions. These macroeconomic forecasts incorporate variables that have historically been key drivers of increases and decreases in credit losses. These variables include, but are not limited to: gross domestic product, unemployment rate, consumer price index, corporate interest rate spreads, and economic policy. Changes in the economic forecasts could significantly affect the estimated credit losses, which could potentially lead to materially different allowance levels from one reporting period to the next.
Certain loans are not included in pools of loans that are collectively evaluated. The segregation of these loans is based on the results from analysis of individually identified credits that meet management's criteria for individual evaluation. These loans are first reviewed individually to determine if such loans have a unique risk profile that would warrant individual evaluation. Loans where management has concluded that it is probable that the borrower will be unable to pay all amounts due under the original contractual terms are removed from the pools of loans collectively evaluated. They are then specifically reviewed and evaluated individually by management for loss potential by evaluating sources of repayment, including collateral as applicable, and a specified allowance for credit losses is established where necessary. By definition, any loan that management has placed on non-accrual is required to be individually evaluated, however, not all individually
33 TriCo Bancshares 2025 10-K
evaluated loans need to be placed on non-accrual.
Because current economic conditions and forecasts can change and determining the likelihood of future events make it inherently difficult to predict the amount of estimated credit losses on loans, management's determination of the appropriateness of the ACL, could change significantly. It is difficult to estimate how potential changes in any one economic factor or input might affect the overall allowance because a wide variety of factors and inputs are considered in estimating the allowance and changes in those factors and inputs considered may not occur at the same rate and may not be consistent across all product types. Additionally, changes in factors and inputs may move independently of one another, such that improvement in one or certain factors may offset deterioration in others. Thus, as a result of the significant size of the loan portfolio, the numerous assumptions in the model, and the high degree of potential change in such assumptions, there is a high degree of sensitivity to the reported amounts. The ACL is sensitive to changes in key assumptions, and changes in the economic forecasts, the forecast period, and other macroeconomic factors, such as those noted above, would all change the outcome of the quantitative components of the ACL. Those results would then need to be assessed from a qualitative perspective, potentially requiring further adjustments to the qualitative components to arrive at a reasonable and appropriate allowance for credit losses. Management believes that the ACL was adequate as of December 31, 2025.
Other Accounting Policies and Estimates that are Not Considered Critical
On an on-going basis, the Company evaluates its estimates, including those that may materially affect the financial statements and are related to investments, mortgage servicing rights, fair value measurements, retirement plans, intangible assets and the fair value of acquired assets and liabilities. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. The Company's policies related to these estimates can be found in Note 1 in the financial statements at Part II, Item 8 of this report.
Geographical Descriptions
For the purpose of describing the geographical location of the Company's operations, the Company has defined northern California as that area of California north of, and including, Stockton to the east and San Jose to the west; central California as that area of the state south of Stockton and San Jose, to and including, Bakersfield to the east and San Luis Obispo to the west; and southern California as that area of the state south of Bakersfield and San Luis Obispo.
Results of Operations
Average balances, including balances used in calculating certain financial ratios, are generally comprised of average daily balances for the Company. Within Management's Discussion and Analysis of Financial Condition and Results of Operations, certain performance measures including interest income, net interest income, net interest yield, and efficiency ratio are generally presented on a fully tax-equivalent (FTE) basis. The Company believes the use of these non-generally accepted accounting principles (non-GAAP) measures provides additional clarity in assessing its results.
Net Interest Income
Net interest income is our largest source of revenue and is the difference between the interest earned on interest-earning assets (generally loans, leases and investment securities) and the interest expense incurred in connection with interest-bearing liabilities (generally deposits and borrowed funds). The level of net interest income is primarily a function of the difference between the effective yield on our average interest-earning assets and the effective cost of our interest-bearing liabilities. These factors are influenced by the pricing and mix of interest-earning assets and interest-bearing liabilities which, in turn, are impacted by external factors such as local economic conditions, competition for loans and deposits, the monetary policy of the FRB and market interest rates. For further discussion, refer to "-Risk Factors - Risks Related to Interest Rates." Following is a summary of the Company's net interest income for the periods indicated (dollars in thousands):
34 TriCo Bancshares 2025 10-K
Year ended December 31,
2025 2024 2023
Interest income $ 470,572 $ 466,638 $ 438,354
Interest expense (119,729) (135,204) (81,677)
Net interest income (not FTE) 350,843 331,434 356,677
FTE adjustment 1,050 1,085 1,536
Net interest income (FTE) $ 351,893 $ 332,519 $ 358,213
Net interest margin (FTE) 3.89 % 3.71 % 3.96 %
Acquired loans discount accretion:
Purchased loan discount accretion $ 5,153 $ 4,329 $ 5,651
Effect on average loan yield 0.08 % 0.07 % 0.09 %
Effect of purchased loan discount accretion on net interest margin (FTE) 0.06 % 0.05 % 0.06 %
Net interest income (FTE) during the year ended December 31, 2025 increased $19.4 million or 5.8% to $351.9 million compared against $332.5 million during the year ended December 31, 2024. The increased amount of net interest income reflects the declining rate environment driving a decrease in the cost of funds from both deposits and borrowings, only slightly offset by modestly lower yields on loan and lease balances, and investment securities during 2025. Average loan balances increased by $166.3 million or 2.5% from December 31, 2024. Meanwhile, the yield on interest earning assets was 5.21% and 5.21% for the years ended December 31, 2025 and 2024, respectively. The unchanged earning asset yield was reflective of a 4 basis point decrease in total loan yields and a 3 basis point decrease in yield associated with total investment securities. Meanwhile, the costs of total interest bearing liabilities decreased 29 basis points to 2.04% during the year ended December 31, 2025, as compared to 2.33% for the year ended December 31, 2024. During the same period, costs associated with interest bearing deposits decreased by 12 basis points to 1.97% as compared to 2.09% in the prior year. The decrease in interest expense for the year ended December 31, 2025, as compared to the trailing year, was primarily due to the continued balance sheet mix shift where liquidity from deposit growth and investment security principal repayments were utilized to pay down borrowings.
Net interest income (FTE) during the year ended December 31, 2024 decreased $25.7 million or 7.2% to $332.5 million compared against $358.2 million during the year ended December 31, 2023. The decreased amount of net interest income reflects the higher rate environment driving an increase in the cost of funds from both deposits and borrowings, partially offset by improved yields on loan and lease balances, and investment securities during 2024. Average loan balances increased by $189.8 million or 2.9% from December 31, 2023. Meanwhile, the yield on interest earning assets was 5.21% and 4.87% for the years ended December 31, 2024 and 2023, respectively. This 34 basis point increase in total earning asset yield was attributable to a 35 basis point increase in total loan yields and a 7 basis point increase in yields on total investments. Of the 35 basis point increase in loan yields, 11 basis points was attributable to increased volume in average loans outstanding, and 26 basis points from elevated interest rates. There was a decline of 2 basis points attributed to the accretion of purchased loan fees. Meanwhile, the costs of total interest bearing liabilities increased 85 basis points to 2.33% during the year ended December 31, 2024, as compared to 1.48% for the year ended December 31, 2023. During the same period, costs associated with interest bearing deposits increased by 99 basis points to 2.09% as compared to 1.10% in the prior year. The increase in interest expense for the year ended December 31, 2024, as compared to the trailing year, was due to the increase in short term interest rates, as influenced by the FOMC actions, that began in 2023 and which remained elevated until late 2024.
For more information related to loan interest income, including loan purchase discount accretion, see the Summary of Average Balances, Yields/Rates and Interest Differential. The "Yield" and "Volume/Rate" tables shown below are useful in illustrating and quantifying the developments that affected net interest income during 2025 and 2024.
Summary of Average Balances, Yields/Rates and Interest Differential - Yield Tables
The following tables present, for the periods indicated, information regarding the Company's consolidated average assets, liabilities and shareholders' equity, the amounts of interest income from average earning assets and resulting yields, and the amount of interest expense paid on interest-bearing liabilities. Average loan balances include nonperforming loans. Interest income includes proceeds from loans on nonaccrual loans only to the extent cash payments have been received and applied to interest income. Yields on securities and certain loans have been adjusted upward to reflect the effect of income thereon exempt from federal income taxation at the statutory tax rate applicable during the period presented (dollars in thousands):
35 TriCo Bancshares 2025 10-K
Year ended December 31,
2025 2024 2023
Average
Balance 		Interest
Income/
Expense 		Rates
Earned
/Paid 		Average
Balance 		Interest
Income/
Expense 		Rates
Earned
/Paid 		Average
Balance 		Interest
Income/
Expense 		Rates
Earned
/Paid
Assets:
Loans $ 6,913,337 $ 397,308 5.75 % $ 6,747,072 $ 390,491 5.79 % $ 6,557,246 $ 356,710 5.44 %
Investment securities-taxable 1,787,112 60,398 3.38 % 2,008,823 68,434 3.41 % 2,272,301 75,203 3.31 %
Investment securities-nontaxable (1) 132,154 4,551 3.44 % 136,530 4,700 3.44 % 181,766 6,656 3.66 %
Total investments 1,919,266 64,949 3.38 % 2,145,353 73,134 3.41 % 2,454,067 81,859 3.34 %
Cash at Federal Reserve and other banks 216,083 9,365 4.33 % 80,439 4,098 5.09 % 26,469 1,321 4.99 %
Total interest-earning assets 9,048,686 471,622 5.21 % 8,972,864 467,723 5.21 % 9,037,782 439,890 4.87 %
Other assets 806,100 784,462 832,407
Total assets $ 9,854,786 $ 9,757,326 $ 9,870,189
Liabilities and shareholders' equity:
Interest-bearing demand deposits $ 1,829,324 $ 25,212 1.38 % $ 1,734,900 $ 22,998 1.33 % $ 1,709,930 $ 11,190 0.65 %
Savings deposits 2,808,876 49,060 1.75 % 2,677,726 49,028 1.83 % 2,805,424 31,444 1.12 %
Time deposits 1,106,959 39,033 3.53 % 999,143 41,100 4.11 % 473,688 12,453 2.63 %
Total interest-bearing deposits 5,745,159 113,305 1.97 % 5,411,769 113,126 2.09 % 4,989,042 55,087 1.10 %
Other borrowings 35,585 1,065 2.99 % 294,318 14,706 5.00 % 430,736 19,712 4.58 %
Junior subordinated debt 78,604 5,359 6.82 % 101,139 7,372 7.29 % 101,064 6,878 6.81 %
Total interest-bearing liabilities 5,859,348 119,729 2.04 % 5,807,226 135,204 2.33 % 5,520,842 81,677 1.48 %
Noninterest-bearing deposits 2,544,718 2,584,904 3,068,839
Other liabilities 163,761 165,056 178,072
Shareholders' equity 1,286,959 1,200,140 1,102,436
Total liabilities and shareholders' equity $ 9,854,786 $ 9,757,326 $ 9,870,189
Net interest spread (2) 3.17 % 2.88 % 3.39 %
Net interest income and interest margin (3) $ 351,893 3.89 % $ 332,519 3.71 % $ 358,213 3.96 %
(1)The fully-taxable equivalent (FTE) adjustment for interest income of non-taxable investment securities was $1.1 million, $1.1 million, and $1.5 million for the years ended December 31, 2025, 2024 and 2023, respectively.
(2)Net interest spread represents the average yield earned on interest-earning assets less the average rate paid on interest-bearing liabilities.
(3)Net interest margin is computed by dividing net interest income by total average earning assets.
36 TriCo Bancshares 2025 10-K
Summary of Changes in Interest Income and Expense due to Changes in Average Asset and Liability Balances and Yields Earned and Rates Paid - Volume/Rate Tables
The following table sets forth a summary of the changes in the Company's interest income and interest expense from changes in average asset and liability balances (volume) and changes in average interest rates for the periods indicated. Changes applicable to both rate and volume have been included in the rate variance. Amounts are calculated on a fully taxable equivalent basis:
2025 over 2024
2024 over 2023
Volume Rate Total Volume Rate Total
Increase (decrease) in interest income:
Loans $ 9,627 $ (2,810) $ 6,817 $ 10,327 $ 23,454 $ 33,781
Investment securities (7,711) (474) (8,185) (10,298) 1,573 (8,725)
Cash at Federal Reserve and other banks 6,904 (1,637) 5,267 2,694 83 2,777
Total interest-earning assets 8,820 (4,921) 3,899 2,723 25,110 27,833
Increase (decrease) in interest expense:
Interest-bearing demand deposits 1,256 958 2,214 163 11,645 11,808
Savings deposits 2,400 (2,368) 32 (1,431) 19,015 17,584
Time deposits 4,431 (6,498) (2,067) 13,814 14,833 28,647
Other borrowings (12,937) (704) (13,641) (6,243) 1,237 (5,006)
Junior subordinated debt (1,643) (370) (2,013) 5 489 494
Total interest-bearing liabilities (6,493) (8,982) (15,475) 6,308 47,219 53,527
Increase (decrease) in net interest income $ 15,313 $ 4,061 $ 19,374 $ (3,585) $ (22,109) $ (25,694)
Year Over Year Balance Sheet Change
Ending balances As of December 31,
% Change
($'s in thousands) 2025 2024 $ Change
Total assets $ 9,822,063 $ 9,673,728 $ 148,335 1.5 %
Total loans 7,111,087 6,768,523 342,564 5.1 %
Total investments 1,842,417 2,036,610 (194,193) (9.5) %
Total deposits 8,263,901 8,087,576 176,325 2.2 %
Total other borrowings 11,713 89,610 (77,897) (86.9) %
Balance sheet mix shift where liquidity from deposit growth and investment security principal repayments and sales were utilized to pay down borrowings and benefit net interest income and net interest margin during the year ended 2025. More specifically, deposit increases of $176.3 million and principal, maturities, repayment and sales on investment securities of $194.2 million, facilitated a $77.9 million reduction in higher cost balances of other borrowings and an increase of $342.6 million in loans.
Provision for Credit Losses
The provision for credit losses during any period is the sum of the allowance for credit losses required at the end of the period and any net charge-offs during the period, less the allowance for credit losses required at the beginning of the period, and less any recoveries during the period. See the Tables labeled "Allowance for Credit Losses - December 31, 2025 and 2024"at Note 5 in Item 8 of Part II of this report for the components that make up the provision for credit losses for the years ended December 31, 2025 and 2024.
The Company recorded a provision for credit losses of $12.1 million during the year ended December 31, 2025, versus $6.6 million during the trailing year end. The increase in required provisioning during 2025 was largely attributed to loan growth and elevated charge-offs, relative to the 2024 period with muted loan growth and less volatility within collateral values.
The Company recorded a provision for credit losses of $6.6 million during the year ended December 31, 2024, versus $24.0 million during the trailing year end. The decrease in required provisioning during 2024 was largely attributed to muted loan growth and less change in qualitative reserves driven by more stability in CA unemployment trends and Corporate BBB bond yields, as compared to the trailing year.
Net charge-offs for the year ended December 31, 2025 totaled $9.9 million, as compared to net charge-offs of $2.6 million for the year ended December 31, 2024. Total nonperforming loans increased by 25 basis points to 0.90% of total loans at December 31, 2025 from 0.65% of total loans at December 31, 2024. For further details of the change in nonperforming loans during the period ended December 31, 2025 see the Tables, and associated narratives, labeled "Changes in nonperforming assets during the year ended December 31, 2025"and "Changes in nonperforming assets during the three months ended December 31, 2025"under the heading "Asset Quality and Non-Performing Assets" below.
37 TriCo Bancshares 2025 10-K
The following table summarizes the components of the provision for credit losses during the periods indicated (dollars in thousands):
Year ended December 31,
(dollars in thousands) 2025 2024 2023
Provision for allowance for credit losses $ 10,318 $ 6,482 $ 22,455
Change in reserve for unfunded loan commitments
1,745 150 1,535
Total provision for credit losses $ 12,063 $ 6,632 $ 23,990
The provision for credit losses is based on management's evaluation of inherent risks in the loan portfolio and a corresponding analysis of the allowance for credit losses. Additional discussion on loan quality, our procedures to identify individually evaluation loans and the related reserves, if any, and the allowance for credit losses is provided under the heading "Asset Quality and Non-Performing Assets" below.
Non-interest Income
The following table summarizes the Company's non-interest income for the periods indicated (dollars in thousands):
Year Ended December 31,
2025 2024 2023
ATM and interchange fees $ 25,541 $ 25,319 $ 26,459
Service charges on deposit accounts 20,967 19,451 17,595
Other service fees 5,761 5,301 4,732
Mortgage banking service fees 1,736 1,739 1,808
Change in value of mortgage loan servicing rights (560) (480) (506)
Total service charges and fees 53,445 51,330 50,088
Increase in cash value of life insurance 3,395 3,257 3,150
Asset management and commission income 7,025 5,573 4,517
Gain on sale of loans 1,606 1,532 1,166
Lease brokerage income 224 455 441
Sale of customer checks 1,300 1,216 1,383
(Loss) gain on sale or exchange of investment securities (3,247) (43) (284)
(Loss) gain on marketable equity securities 84 126 36
Other income 4,506 961 903
Total other non-interest income 14,893 13,077 11,312
Total non-interest income $ 68,338 $ 64,407 $ 61,400
Non-interest income increased $3.9 million or 6.1% to $68.3 million during the twelve months ended December 31, 2025, compared to $64.4 million during the comparative twelve months ended December 31, 2024. Increased balances and transaction volume associated with assets under management drove an increase of $1.5 million in related fees, while increased customer usage activities contributed to an increase in service charges and customer fees $1.5 million in the current year as compared to 2024. During 2025, other income increased by $3.5 million due to $2.5 million gain on early extinguishment of subordinated debt, in addition to $1.2 million gain on life insurance benefits during the first quarter. As a partial offset, the Company incurred losses on the sale of investment securities totaling approximately $3.2 million, generating proceeds of $79.2 million.
Non-interest income increased $3.0 million or 4.9% to $64.4 million during the twelve months ended December 31, 2024, compared to $61.4 million during the comparative twelve months ended December 31, 2023. ATM and interchange fees declined in the 2024 period and resulted in a decrease of $1.1 million as compared to the twelve months ended December 31, 2023. Meanwhile, service charges on deposit accounts and other service fees increased by $1.9 million and $0.6 million, respectively, as compared to the equivalent period in 2023 following $0.9 million in waived or reversed fees as a courtesy to customers in the prior year. Elevated activity within asset management and the increases in value of Visa equity securities further contributed to the overall improvement in income during the year ended 2024.
38 TriCo Bancshares 2025 10-K
Non-interest Expense
The following table summarizes the Company's other non-interest expense for the periods indicated (dollars in thousands):
Year Ended December 31,
2025 2024 2023
Base salaries, net of deferred loan origination costs $ 101,546 $ 96,862 $ 94,564
Incentive compensation 20,614 16,897 15,557
Benefits and other compensation costs 27,611 26,822 25,674
Total salaries and benefits expense 149,771 140,581 135,795
Occupancy 17,180 16,411 16,135
Data processing and software 20,218 20,952 18,933
Equipment 5,159 5,424 5,644
Intangible amortization 1,961 4,120 6,118
Advertising 3,433 3,851 3,531
ATM and POS network charges 7,586 7,151 7,080
Professional fees 6,402 6,794 7,358
Telecommunications 1,980 2,053 2,547
Regulatory assessments and insurance 5,181 4,951 5,276
Merger and acquisition expenses - - -
Postage 1,440 1,329 1,236
Operational losses 1,651 1,681 2,444
Courier service 2,184 2,119 1,851
(Gain) loss on sale or acquisition of foreclosed assets 254 (73) (133)
(Gain) loss on disposal of fixed assets 117 19 23
Other miscellaneous expense 16,442 16,742 19,344
Total other non-interest expense 91,188 93,524 97,387
Total non-interest expense $ 240,959 $ 234,105 $ 233,182
Average full-time equivalent staff 1,164 1,170 1,214
Non-interest expense increased $6.9 million or 2.9% to $241.0 million during the twelve months ended December 31, 2025, as compared to $234.1 million for the twelve months ended December 31, 2024. The largest component was salaries and benefits expense which increased $9.2 million or 6.5% to $149.8 million as compared to 2024, attributed to a combination of routine merit increases, increased incentive compensation from elevated levels of both loan and deposit production, and targeted strategic hiring. Other non-interest expense line items evidenced broad based but incremental decreases, driving a net decrease of $2.3 million year over year. For the year ending 2026, Management anticipates that total non-interest expenses will increase by approximately 5% as compared to the 2.9% increase experienced in the 2025 year.
Total non-interest expense increased $0.9 million or 0.4% to $234.1 million during the year ended December 31, 2024, as compared to $233.1 million for the comparative period in 2023. This was largely attributed to an increase of $4.8 million or 3.5% in total salaries and benefits expense to $140.6 million, from routine compensation adjustments and other increases in benefits and compensation. As noted above, salaries expense was also impacted by an increase in average compensation per employee as various strategic talent acquisitions were made in order to further prepare the Company to execute its growth objectives beyond $10 billion in total assets. Additionally, data processing and software expenses increased by $2.0 million or 10.7% related to ongoing investments in the Company's data management and security infrastructure. These increases were partially offset by declines in non-cash intangible amortization expense of $2.0 million or 32.7% and reductions in operational losses of $0.8 million or 31.2% due to ATM burglary expenses totaling $0.7 million in the comparative period.
39 TriCo Bancshares 2025 10-K
The provisions for income taxes applicable to income before taxes for the years ended December 31, 2025, 2024, and 2023 differ from amounts computed by applying the statutory Federal income tax rates to income before taxes. The effective tax rate and the statutory federal income tax rate are reconciled as follows:
Year Ended December 31,
2025 2024 2023
Federal statutory income tax rate 21.0 % 21.0 % 21.0 %
State income taxes, net of federal tax benefit 6.6 7.9 7.9
Tax-exempt interest on municipal obligations (0.6) (0.5) (0.7)
Tax-exempt life insurance related income (0.6) (0.4) (0.4)
Low income housing and other tax credits (8.7) (7.9) (6.6)
Low income housing tax credit amortization 7.8 6.9 5.6
Compensation and benefits 0.4 0.1 0.3
Non-deductible merger expenses - - -
Other 0.9 (1.2) (0.1)
Effective Tax Rate 26.8 % 25.9 % 27.0 %
The effective tax rate on income was 26.8%, 25.9%, and 27.0% in 2025, 2024, and 2023, respectively. The effective tax rate was greater than the Federal statutory rates of 21% due to the addition of state tax expenses of 6.6%. The impact of Federal and state tax expenses were partially offset by Federal tax-exempt interest income of $5.0 million, $4.4 million, and $5.6 million, respectively, Federal and State tax-exempt income of $4.6 million, $3.3 million, and $3.1 million, respectively, from increase in cash value and gain on death benefit of life insurance, and low income housing tax credits and losses, net of amortization of $3.5 million, $3.0 million, and $1.9 million, respectively. The low-income housing tax credits and the equity compensation excess tax benefits represent direct reductions in tax expense. The items noted above resulted in an effective combined Federal and State income tax rate that differed from the combined Federal and State statutory income tax rate of approximately 29.6% during the three years ended 2025, 2024, and 2023.
Financial Condition
Restricted Equity Securities
Restricted equity securities were $17.3 million at December 31, 2025 and 2024 . The entire balance of restricted equity securities at December 31, 2025 and 2024 represents the Bank's investment in the Federal Home Loan Bank of San Francisco ("FHLB").
FHLB stock is carried at par and does not have a readily determinable fair value. While technically these are considered equity securities, there is no market for the FHLB stock. Therefore, the shares are considered as restricted investment securities. Management periodically evaluates FHLB stock for other-than-temporary impairment. Management's determination of whether these investments are impaired is based on its assessment of the ultimate recoverability of cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of cost is influenced by criteria such as (1) the significance of any decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB, (3) the impact of legislative and regulatory changes on institutions and, accordingly, the customer base of the FHLB, and (4) the liquidity position of the FHLB.
As a member of the FHLB system, the Bank is required to maintain a minimum level of investment in FHLB stock based on specific percentages of its outstanding mortgages, total assets, or FHLB advances. The Bank may request redemption at par value of any stock in excess of the minimum required investment. Stock redemptions are at the discretion of the FHLB.
Loans
The Bank concentrates its lending activities in four principal areas: real estate mortgage loans (residential and commercial loans), consumer loans, commercial loans (including agricultural loans), and real estate construction loans. The interest rates charged for the loans made by the Bank vary with the degree of risk, the size and maturity of the loans, the borrower's relationship with the Bank and prevailing money market rates indicative of the Bank's cost of funds.
The majority of the Bank's loans are direct loans made to individuals, farmers and local businesses. The Bank relies substantially on local promotional activity and personal contacts by bank officers, directors and employees to compete with other financial institutions. The Bank makes loans to borrowers whose applications include a sound purpose, a viable repayment source and a plan of repayment established at inception and generally backed by a secondary source of repayment.
40 TriCo Bancshares 2025 10-K
Loan Portfolio Composition
The following table shows the Company's loan balances, including net deferred loan fees, at the dates indicated:
Year ended December 31,
(dollars in thousands) 2025 2024 2023
Commercial real estate 4,853,762 $ 4,577,632 $ 4,394,802
Consumer 1,314,610 1,281,059 1,313,268
Commercial and industrial 464,428 471,271 586,455
Construction 301,045 279,933 347,198
Agriculture production 172,494 151,822 144,497
Leases 4,748 6,806 8,250
Total loans $ 7,111,087 $ 6,768,523 $ 6,794,470
Allowance for credit losses $ (125,762) $ (125,366) $ (121,522)
The Company did not have any significant loan purchases during 2025, 2024 and 2023.
The following table shows the Company's loan balances, including net deferred loan fees, as a percentage of total loans at the dates indicated:
Year ended December 31,
(dollars in thousands) 2025 2024 2023
Commercial real estate 68.3 % 67.6 % 64.7 %
Consumer 18.5 % 18.9 % 19.3 %
Commercial and industrial 6.5 % 7.1 % 8.7 %
Construction 4.2 % 4.1 % 5.1 %
Agriculture production 2.4 % 2.2 % 2.1 %
Leases 0.1 % 0.1 % 0.1 %
Total loans 100.0 % 100.0 % 100.0 %
Allowance for credit losses 1.77 % 1.85 % 1.79 %
At December 31, 2025, loans including net deferred loan fees, totaled $7.1 billion which was a 5.1% or $342.6 million increase over the balance at the end of December 31, 2024. At December 31, 2024, loans including net deferred loan fees, totaled $6.8 billion, which was a 0.4% or $25.9 million decrease over the balance at the end of December 31, 2023.
From time to time the Bank may be presented with the opportunity to purchase individual or pools of loans in whole or in part outside of a transaction that would be considered a business combination. As of December 31, 2025 and 2024, the outstanding carrying value of purchased loans that were not acquired in a business combination totaled $158.9 million and $155.6 million, respectively.
Asset Quality and Nonperforming Assets
Nonperforming Assets
The following tables set forth the amount of the Bank's nonperforming assets as of the dates indicated. "Performing non-accrual loans" are loans that may be current for both principal and interest payments, or are less than 90 days past due, but for which payment in full of both principal and interest is not expected, and are not well secured and in the process of collection:
41 TriCo Bancshares 2025 10-K
December 31,
(dollars in thousands) 2025 2024 2023 2022 2021
Performing nonaccrual loans $ 40,762 $ 19,543 $ 25,380 $ 19,543 $ 27,713
Nonperforming nonaccrual loans 23,374 24,493 6,500 1,770 2,637
Total nonaccrual loans 64,136 44,036 31,880 21,313 30,350
Loans 90 days past due and still accruing 83 60 10 8 -
Total nonperforming loans 64,219 44,096 31,890 21,321 30,350
Foreclosed assets 6,245 2,786 2,705 3,439 2,594
Total nonperforming assets $ 70,464 $ 46,882 $ 34,595 $ 24,760 $ 32,944
U.S. government, including its agencies and its government-sponsored agencies, guaranteed portion of nonperforming loans
$ - $ 819 $ 877 $ 225 $ 756
Nonperforming assets to total assets 0.72 % 0.48 % 0.35 % 0.25 % 0.38 %
Nonperforming loans to total loans 0.90 % 0.65 % 0.47 % 0.33 % 0.61 %
Allowance for credit losses to nonperforming loans 196 % 284 % 381 % 516 % 281 %
Changes in nonperforming assets during the year ended December 31, 2025
The following table shows the activity in the balance of nonperforming assets for the year ended December 31, 2025:
(in thousands) Balance at December 31, 2024 Additions Advances/
Paydowns, net 		Charge-offs/
Write-downs 		Transfers to
Foreclosed
Assets 		Balance at December 31, 2025
Commercial real estate:
CRE non-owner occupied $ 3,017 $ 5,068 $ (996) $ - $ - $ 7,089
CRE owner occupied 3,874 9,725 (5,866) - - 7,733
Multifamily 480 - (45) - - 435
Farmland 16,195 23,994 (1,846) (1,053) (5,675) 31,615
Total commercial real estate loans 23,566 38,787 (8,753) (1,053) (5,675) 46,872
Consumer:
SFR 1-4 1st DT 5,979 2,546 (2,104) - (175) 6,246
SFR HELOCs and junior liens 3,868 3,276 (1,670) - - 5,474
Other 204 539 (109) (175) - 459
Total consumer loans 10,051 6,361 (3,883) (175) (175) 12,179
Commercial and industrial 9,765 4,792 (1,205) (9,339) - 4,013
Construction 57 2,163 (1,111) - (459) 650
Agriculture production 657 3,276 (3,417) (11) - 505
Leases - - - - - -
Total nonperforming loans 44,096 55,379 (18,369) (10,578) (6,309) 64,219
Foreclosed assets 2,786 - (2,848) (2) 6,309 6,245
Total nonperforming assets $ 46,882 $ 55,379 $ (21,217) $ (10,580) $ - $ 70,464
The table above does not include deposit overdraft charge-offs.
Nonperforming assets increased by $23.6 million or 50.3% to $70.5 million at December 31, 2025 from $46.9 million at December 31, 2024. The increase in nonperforming assets during 2025 was primarily the result of additions of nonperforming loans totaling $55.4 million, primarily consisting of farmland, partially offset by net paydowns, sales or upgrades of nonperforming loans to performing status totaling $18.4 million, and net charge-offs of $10.6 million.
42 TriCo Bancshares 2025 10-K
Changes in nonperforming assets during the year ended December 31, 2024
The following table shows the activity in the balance of nonperforming assets for the year ended December 31, 2024:
(in thousands) Balance at December 31, 2023 Additions Advances/
Paydowns, net 		Charge-offs/
Write-downs 		Transfers to
Foreclosed
Assets 		Balance at December 31, 2024
Commercial real estate:
CRE non-owner occupied $ 2,024 $ 4,211 $ (3,218) $ - $ - $ 3,017
CRE owner occupied 3,994 774 (894) - - 3,874
Multifamily - 502 (22) - - 480
Farmland 14,484 3,712 (2,001) - - 16,195
Total commercial real estate loans 20,502 9,199 (6,135) - - 23,566
Consumer:
SFR 1-4 1st DT 2,811 4,060 (641) (26) (225) 5,979
SFR HELOCs and junior liens 3,571 2,138 (1,801) (40) - 3,868
Other 105 511 (43) (369) - 204
Total consumer loans 6,487 6,709 (2,485) (435) (225) 10,051
Commercial and industrial 2,513 11,017 (1,978) (1,787) - 9,765
Construction 67 9 (7) - (12) 57
Agriculture production 2,321 692 (906) (1,450) - 657
Leases - - - - - -
Total nonperforming loans 31,890 27,626 (11,511) (3,672) (237) 44,096
Foreclosed assets 2,705 423 (395) (184) 237 2,786
Total nonperforming assets $ 34,595 $ 28,049 $ (11,906) $ (3,856) $ - $ 46,882
The table above does not include deposit overdraft charge-offs.
Nonperforming assets increased by $12.3 million or 35.5% to $46.9 million at December 31, 2024 from $34.6 million at December 31, 2023. The increase in nonperforming assets during 2024 was the result of $27.6 million of additions to non-performing loans, which was partially offset by net paydowns, sales or upgrades of nonperforming loans to performing status totaling $11.5 million and net charge-offs of $3.7 million.
43 TriCo Bancshares 2025 10-K
Changes in nonperforming assets during the three months ended December 31, 2025
The following table shows the activity in the balance of nonperforming assets for the quarter ended December 31, 2025:
(in thousands) Balance at September 30, 2025 Additions Advances/
Paydowns, net 		Charge-offs/
Write-downs (1) 		Transfers to
Foreclosed
Assets 		Balance at December 31, 2025
Commercial real estate:
CRE non-owner occupied $ 5,246 $ 2,678 $ (835) $ - $ - $ 7,089
CRE owner occupied 6,506 1,432 (205) - - 7,733
Multifamily 446 - (11) - - 435
Farmland 36,291 406 (1,101) (1,053) (2,928) 31,615
Total commercial real estate loans 48,489 4,516 (2,152) (1,053) (2,928) 46,872
Consumer:
SFR 1-4 1st DT 6,302 1,153 (1,034) - (175) 6,246
SFR HELOCs and junior liens 5,784 315 (625) - - 5,474
Other 421 112 (7) (67) - 459
Total consumer loans 12,507 1,580 (1,666) (67) (175) 12,179
Commercial and industrial 1,840 2,926 (651) (102) - 4,013
Construction 2,138 74 (1,103) - (459) 650
Agriculture production 673 45 (213) - - 505
Leases - - - - - -
Total nonperforming loans 65,647 9,141 (5,785) (1,222) (3,562) 64,219
Foreclosed assets 5,430 - (2,747) - 3,562 6,245
Total nonperforming assets $ 71,077 $ 9,141 $ (8,532) $ (1,222) $ - $ 70,464
(1) Charge-offs and write-downs exclude deposit overdraft charge-offs.
Nonperforming assets decreased during the fourth quarter by $0.6 million or 0.9% to $70.5 million at December 31, 2025 compared to $71.1 million at September 30, 2025. The decrease in nonperforming assets during the fourth quarter of 2025 was the result of new nonperforming loans of $9.1 million, that were collectively offset by net paydowns, sales or upgrades of nonperforming loans to performing status totaling $5.8 million, and net charge-offs of $1.2 million in non-performing loans.
44 TriCo Bancshares 2025 10-K
Changes in nonperforming assets during the three months ended December 31, 2024
The following table shows the activity in the balance of nonperforming assets for the quarter ended December 31, 2024:
(in thousands) Balance at September 30, 2024 Additions Advances/
Paydowns, net 		Charge-offs/
Write-downs (1) 		Transfers to
Foreclosed
Assets 		Balance at December 31, 2024
Commercial real estate:
CRE non-owner occupied $ 3,623 $ - $ (606) $ - $ - $ 3,017
CRE owner occupied 3,278 748 (152) - - 3,874
Multifamily 502 - (22) - - 480
Farmland 12,967 3,712 (484) - - 16,195
Total commercial real estate loans 20,370 4,460 (1,264) - - 23,566
Consumer:
SFR 1-4 1st DT 5,997 413 (206) - (225) 5,979
SFR HELOCs and junior liens 4,238 336 (706) - - 3,868
Other 117 203 (8) (108) - 204
Total consumer loans 10,352 952 (920) (108) (225) 10,051
Commercial and industrial 10,642 410 (774) (513) - 9,765
Construction 59 - (2) - - 57
Agriculture production 213 475 (31) - - 657
Leases - - - - - -
Total nonperforming loans 41,636 6,297 (2,991) (621) (225) 44,096
Foreclosed assets 2,764 (19) - 225 2,786
Total nonperforming assets $ 44,400 $ 6,278 $ (2,991) $ (805) $ - $ 46,882
(1) Charge-offs and write-downs exclude deposit overdraft charge-offs.
Nonperforming assets increased during the fourth quarter of 2024 by $2.5 million or 5.6% to $46.9 million at December 31, 2024 compared to $44.4 million at September 30, 2024. The increase in nonperforming assets during the fourth quarter of 2024 was the result of new nonperforming loans of $6.3 million, that were partially offset by net paydowns, sales or upgrades of nonperforming loans to performing status totaling $3.0 million, and net charge-offs of $0.6 million in non-performing loans.
Allowance for Credit Losses - Investment Securities
The Company evaluates available for sale debt securities in an unrealized loss position to determine whether the decline in the fair value below the amortized cost basis (impairment) is due to credit-related factors or noncredit-related factors. Any impairment that is not credit related is recognized in other comprehensive income, net of applicable taxes. Credit-related impairment is recognized as an allowance for credit losses on the balance sheet, limited to the amount by which the amortized cost basis exceeds the fair value, with a corresponding adjustment to earnings. Both the allowance for credit losses and the adjustment to net income may be reversed if conditions change. However, if the Company intends to sell an impaired available for sale debt security or more likely than not will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount is recognized in earnings with a corresponding adjustment to the security's amortized cost basis. During the years ended December 31, 2025 and 2024, no allowance for credit losses nor impairment recognized in earnings related to available for sale investment securities was recorded.
Allowance for Credit Losses - Held to Maturity Investment Securities
In addition to credit losses associated with the Company's loan portfolio, the CECL standard requires that loss estimates be developed for securities classified as held-to-maturity (HTM). As of December 31, 2025, the Company's HTM investment portfolio had a carrying value of approximately $90.5 million and was comprised of $89.0 million in obligations backed by U.S. government agencies and $1.6 million in obligations of states and political subdivisions. As the 98.3% of the HTM portfolio consisted of investment securities where payment performance has an implicit or explicit guarantee from the U.S. government and where no history of credit losses exist, management believes that indicators for zero loss are present and therefore, no loss reserves were recognized in conjunction with the adoption of the CECL standard. Further, management separately evaluated its HTM investment securities from obligations of state and political subdivisions utilizing the historical loss data represented by similar securities over a period of time spanning nearly 50 years. Based on this evaluation, management determined that the expected credit losses associated with these securities is less than significant for financial reporting purposes. Therefore, as of and during the years ended December 31, 2025, 2024, and 2023, no allowance for credit losses related to HTM securities was recorded.
45 TriCo Bancshares 2025 10-K
Allowance for Credit Losses - Unfunded Commitments
The estimated credit losses associated with these unfunded lending commitments is calculated using the same models and methodologies for loans but also incorporates utilization assumptions at the estimated time of default based on a historical utilization rate for each segment. While the provision for credit losses associated with unfunded commitments is included in "provision for (benefit from) credit losses" on the consolidated statement of income, the reserve for unfunded commitments is maintained on the consolidated balance sheet in other liabilities.
The Components of the Allowance for Credit Losses
The following table summarizes the allocation of the allowance for credit losses between loan types:
December 31,
(in thousands) 2025 2024 2023 2022 2021
Commercial real estate $ 75,532 $ 72,849 $ 68,864 $ 61,381 $ 51,140
Consumer 26,283 27,463 27,453 24,639 23,474
Commercial and industrial 11,430 14,397 12,750 13,597 3,862
Construction 8,231 7,224 8,856 5,142 5,667
Agriculture production 4,265 3,403 3,589 906 1,215
Leases 21 30 10 15 18
Total allowance for credit losses $ 125,762 $ 125,366 $ 121,522 $ 105,680 $ 85,376
The following table summarizes the allocation of the allowance for credit losses between loan types as a percentage of the total allowance for credit losses:
December 31,
2025 2024 2023 2022 2021
Commercial real estate 60.1 % 58.1 % 56.6 % 58.0 % 59.9 %
Consumer 20.9 % 21.9 % 22.6 % 23.3 % 27.5 %
Commercial and industrial 9.1 % 11.5 % 10.5 % 12.9 % 4.5 %
Construction 6.5 % 5.8 % 7.3 % 4.9 % 6.6 %
Agriculture production 3.4 % 2.7 % 3.0 % 0.9 % 1.4 %
Leases - % - % - % - % 0.1 %
Total allowance for credit losses 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
The following table summarizes the allocation of the allowance for credit losses between loan types as a percentage of total loans in each of the loan categories listed:
December 31,
2025 2024 2023 2022 2021
Commercial real estate 1.56 % 1.59 % 1.57 % 1.41 % 1.55 %
Consumer 2.00 % 2.14 % 2.09 % 1.99 % 2.19 %
Commercial and industrial 2.46 % 3.05 % 2.17 % 2.39 % 1.49 %
Construction 2.73 % 2.58 % 2.55 % 2.43 % 2.55 %
Agriculture production 2.47 % 2.24 % 2.48 % 1.48 % 2.39 %
Leases 0.44 % 0.44 % 0.12 % 0.19 % 0.27 %
Total allowance for credit losses 1.77 % 1.85 % 1.79 % 1.64 % 1.74 %
46 TriCo Bancshares 2025 10-K
The following tables summarize the net charge-off (recovery) activity in the allowance for credit/loan losses as a percentage of loans for the years indicated (dollars in thousands):
Year ended December 31,
Ratios: 2025 2024 2023 2022 2021
Net charge-offs (recoveries) during period to average loans outstanding during period
Commercial real estate:
CRE non-owner occupied - % (0.01) % - % - % - %
CRE owner occupied - % - % 0.38 % - % (0.11) %
Multifamily - % - % - % - % - %
Farmland (0.41) % - % - % 0.01 % 0.07 %
Consumer:
SFR 1-4 1st DT liens - % - % (0.02) % 0.00 % 0.02 %
SFR HELOCs and junior liens 0.01 % 0.10 % (0.01) % 0.00 % 0.33 %
Other 1.04 % 0.81 % 0.50 % 0.20 % 0.32 %
Commercial and industrial 1.93 % 0.23 % 0.60 % 0.17 % 0.28 %
Construction - % - % - % - % 0.01 %
Agriculture production (0.40) % 0.93 % - % 0.00 % (0.05) %
Leases - % - % - % - % - %
Provision for (benefit from) credit losses to average loans outstanding during period
0.15 % 0.10 % 0.35 % 0.29 % (0.15) %
Allowance for credit losses to loans at year-end 1.77 % 1.85 % 1.79 % 1.64 % 1.74 %
Generally, losses are triggered by non-performance by the borrower and calculated based on any difference between the current loan amount and the current value of the underlying collateral less any estimated costs associated with the disposition of the collateral.
Foreclosed Assets, Net of Allowance for Losses
The following tables detail the components and summarize the activity in foreclosed assets, net of allowances for losses for the years indicated (dollars in thousands):
Balance at December 31, 2024 Additions Advances/
Capitalized
Costs/Other 		Sales Valuation
Adjustments 		Balance at December 31, 2025
Land & Construction $ 204 $ 6,135 $ - $ (2,747) $ - $ 3,592
Residential real estate 1,683 175 - (101) (3) 1,754
Commercial real estate 899 - - - - 899
Total foreclosed assets $ 2,786 $ 6,310 $ - $ (2,848) $ (3) $ 6,245
Balance at December 31, 2023 Additions Advances/
Capitalized
Costs/Other 		Sales Valuation
Adjustments 		Balance at December 31, 2024
Land & Construction $ 154 $ 11 $ - $ - $ 39 $ 204
Residential real estate 1,673 650 - (359) (281) 1,683
Commercial real estate 878 21 - - - 899
Total foreclosed assets $ 2,705 $ 682 $ - $ (359) $ (242) $ 2,786
47 TriCo Bancshares 2025 10-K
Deposit Portfolio Composition
The following table shows the Company's deposit balances at the dates indicated:
Year ended December 31,
(dollars in thousands) 2025 2024 2023
Noninterest-bearing demand $ 2,594,032 $ 2,548,613 $ 2,722,689
Interest-bearing demand 1,784,769 1,758,629 1,731,814
Savings 2,775,058 2,657,849 2,682,068
Time certificates, over $250,000 484,858 485,180 250,180
Other time certificates 625,184 637,305 447,287
Total deposits $ 8,263,901 $ 8,087,576 $ 7,834,038
Total uninsured deposits were estimated to be approximately $2.8 billion and $2.6 billion at December 31, 2025 and 2024, respectively.
Other Borrowings
See Note 13 to the consolidated financial statements at Part II, Item 8 of this report for information about the Company's other borrowings.
Junior Subordinated Debt
See Note 14 to the consolidated financial statements at Part II, Item 8 of this report for information about the Company's junior subordinated debt.
Equity
See Note 16 and Note 26 in the consolidated financial statements at Part II, Item 8 of this report for a discussion of shareholders' equity and regulatory capital, respectively. Management believes that the Company's capital is adequate to support anticipated growth, meet the cash dividend requirements of the Company and meet the future risk-based capital requirements of the Bank and the Company.
On February 25, 2021 the Board of Directors approved the authorization to repurchase up to 2,000,000 shares of the Company's common stock (the 2021 Repurchase Plan), which approximated 6.7% of the shares outstanding as of the approval date. The following table shows the repurchases made by the Company during 2025 under the 2021 Plan:
Period Total number of
shares purchased 		Average price
paid per share 		Maximum number
of shares remaining that may
yet be purchased under
the 2021 Plan
October 1-31, 2025 - - 308,785
November 1-30, 2025 99,904 46.20 208,881
December 1-31, 2025 87,530 48.88 121,351
January 1, 2025 - December 31, 2025
709,172 $42.51 121,351
The Company announced the Board of Directors approved the authorization to repurchase up to 2,000,000 shares of the Company's common stock, no par value per share which approximates 6.2% of the currently outstanding common shares. The Company's 2025 Share Repurchase Program replaces and supersedes the current 2021 Share Repurchase Plan which has been terminated. Under the new program, management is authorized to repurchase shares at its discretion through Rule 10b5-1 plans, open market purchases, privately negotiated transactions, block purchases or otherwise in a manner that is intended to comply with applicable federal securities laws, including Rule 10b-18 of the Securities Exchange Act of 1934. The Board may suspend or discontinue the program at any time. There were no shares repurchased under this Program during 2025.
Market Risk Management
Overview.The goal for managing the assets and liabilities of the Bank is to maximize shareholder value and earnings while maintaining a high quality balance sheet without exposing the Bank to undue interest rate risk. The Board of Directors has overall responsibility for the Company's interest rate risk management policies. The Bank has an Asset and Liability Management Committee which establishes and monitors guidelines to control the sensitivity of earnings and the fair value of certain assets and liabilities as may be caused by changes in interest rates. The Company does not hold any financial instruments that are not maintained in US dollars and is not party to any contracts that may be settled or repaid in a denomination other than US dollars.
Asset/Liability Management.Activities involved in asset/liability management include but are not limited to lending, accepting and placing deposits, investing in securities and issuing debt. Interest rate risk is the primary market risk associated with asset/liability management. Sensitivity of earnings to interest rate changes arises when yields on assets change in a different time period or in a different amount from
48 TriCo Bancshares 2025 10-K
that of interest costs on liabilities. To mitigate interest rate risk, the structure of the balance sheet is managed with the goal that movements of interest rates on assets and liabilities are correlated and contribute to earnings even in periods of volatile interest rates. The asset/liability management policy sets limits on the acceptable amount of variance in net interest margin and market value of equity under changing interest environments. Market value of equity is the net present value of estimated cash flows from the Bank's assets, liabilities and off-balance sheet items. The Bank uses simulation models to forecast net interest margin and market value of equity.
Simulation of net interest margin and market value of equity under various interest rate scenarios is the primary tool used to measure interest rate risk. The Bank estimated the potential impact of changing interest rates on net interest margin and market value of equity using computer-modeling techniques. A balance sheet forecast is prepared using inputs of actual loan, securities and interest-bearing liability (i.e. deposits/borrowings) positions as the beginning base.
In the simulation of net interest income and market value of equity, the forecast balance sheet is processed against various interest rate scenarios. These various interest rate scenarios include a flat rate scenario, which assumes interest rates are unchanged in the future, and rate ramp and or shock scenarios including -300, -200, -100, +100, +200, and +300 basis points around the flat scenario. At December 31, 2025, the overnight Federal funds rate, the rate primarily used in these interest rate shock scenarios, was 3.75%. These scenarios assume that 1) interest rates increase or decrease evenly (in a "ramp" fashion) over a twelve-month period and remain at the new levels beyond twelve months or 2) that interest rates change instantaneously ("shock"). The simulation results shown below assume no changes in the structure of the Company's balance sheet over the twelve months being measured.
The following table summarizes the estimated effect on net interest income and market value of equity to changing interest rates as measured against a flat rate (no interest rate change) instantaneous shock scenario over a twelve month period utilizing the Company's specific mix of interest earning assets and interest bearing liabilities as of December 31, 2025.
Interest Rate Risk Simulations:
Change in Interest
Rates (Basis Points)
Estimated Change in
Net Interest Income (NII)
(as % of NII) 		Estimated
Change in
Market Value of Equity (MVE)
(as % of MVE)
+300 (shock) (5.2) % (4.6) %
+200 (shock) (3.5) % (2.9) %
+100 (shock) (1.6) % (0.9) %
+ 0 (flat) - -
-100 (shock) (0.1) % (1.6) %
-200 (shock) (0.3) % (5.3) %
-300 (shock) 2.0 % (10.6) %
These simulations indicate that given a "flat or static" balance sheet size scenario, and if interest-bearing checking, savings and money market interest rates track the general interest rate changes by the rate shock values listed above, the Company's balance sheet is liability sensitive over a twelve month time horizon for both a rates up and rates down shock scenario, with greater sensitivity skewed toward rates up. "Asset sensitive" implies that net interest income increases when interest rates rise and decrease when interest rates decrease. "Liability sensitive" implies that net interest income decreases when interest rates rise and increase when interest rates decrease. "Neutral sensitivity" implies that net interest income does not change when interest rates change. The asset liability management policy limits aggregate market risk, as measured in this fashion, to an acceptable level within the context of risk-return trade-offs.
The simulation results noted above do not incorporate any management actions that might moderate the negative consequences of interest rate deviations. In addition, the simulation results noted above contain various assumptions such as a flat balance sheet, and the rate that deposit interest rates change instantaneously as general interest rates change. Therefore, they do not reflect likely actual results, but serve as estimates of interest rate risk. More specifically, the Company's pre-existing low cost of funds, and the presumption that depositors will not accept a negative rate environment, does not allow management the ability to meaningfully adjust the cost of deposits below zero. In addition, many of the Company's loans and investment securities are considered fixed rate interest earning assets. Therefore, in an instantaneous upward rate shock scenario, management would expect the cost of interest bearing liabilities to reprice faster than interest earning assets.
As with any method of measuring interest rate risk, certain shortcomings are inherent in the method of analysis presented in the preceding tables. For example, although certain of the Company's assets and liabilities may have similar maturities or repricing time frames, they may react in different degrees to changes in market interest rates. In addition, the interest rates on certain of the Company's asset and liability categories may precede, or lag behind, changes in market interest rates. Also, the actual rates of prepayments on loans and investments could vary significantly from the assumptions utilized in deriving the results as presented in the preceding tables. Further, a change in U.S. Treasury rates accompanied by a change in the shape of the treasury yield curve could result in different estimations from those presented herein. Accordingly, the results in the preceding tables should not be relied upon as indicative of actual results in the event of changing market interest rates. Additionally, the resulting estimates of changes in market value of equity are not intended to represent, and should not be construed to represent, estimates of changes in the underlying value of the Company.
49 TriCo Bancshares 2025 10-K
Interest rate sensitivity is a function of the repricing characteristics of the Company's portfolio of assets and liabilities. One aspect of these repricing characteristics is the time frame within which the interest-bearing assets and liabilities are subject to change in interest rates either at replacement, repricing or maturity. An analysis of the repricing time frames of interest-bearing assets and liabilities is sometimes called a "gap" analysis because it shows the gap between assets and liabilities repricing or maturing in each of a number of periods. Another aspect of these repricing characteristics is the relative magnitude of the repricing for each category of interest earning asset and interest-bearing liability given various changes in market interest rates. Gap analysis gives no indication of the relative magnitude of repricing given various changes in interest rates. Interest rate sensitivity management focuses on the maturity of assets and liabilities and their repricing during periods of changes in market interest rates. Interest rate sensitivity gaps are measured as the difference between the volumes of assets and liabilities in the Company's current portfolio that are subject to repricing at various time horizons.
The following interest rate sensitivity table shows the Company's repricing gaps as of December 31, 2025. In this table transaction deposits, which may be repriced at will by the Company, have been included in the less than 3-month category. The inclusion of all of the transaction deposits in the less than 3-month repricing category causes the Company to appear liability sensitive. Because the Company may reprice its transaction deposits at will, transaction deposits may or may not reprice immediately with changes in interest rates.
Due to the limitations of gap analysis, as described above, the Company does not actively use gap analysis in managing interest rate risk. Instead, the Company relies on the more sophisticated interest rate risk simulation model described above as its primary tool in measuring and managing interest rate risk.
As of December 31, 2025 Repricing within:
(dollars in thousands) Less than 3
months 		3 - 6 months 6 - 12 months 1 - 5 years Over 5 years
Interest-earning assets:
Cash at Federal Reserve and other banks $ 98,067 $ - $ - $ - $ -
Securities 422,231 82,342 93,007 650,234 661,677
Loans 1,590,940 395,774 769,111 3,721,225 510,873
Total interest-earning assets 2,111,238 478,116 862,118 4,371,459 1,172,550
Interest-bearing liabilities
Transaction deposits 7,160,243 - - - -
Time 850,121 137,922 107,094 14,904 -
Other borrowings 11,713 - - - .
Junior subordinated debt 40,000 - - - -
Total interest-bearing liabilities $ 8,062,077 $ 137,922 $ 107,094 $ 14,904 $ -
Interest sensitivity gap $ (5,950,839) $ 340,194 $ 755,024 $ 4,356,555 $ 1,172,550
Cumulative sensitivity gap $ (5,950,839) $ (5,610,645) $ (4,855,621) $ (499,066) $ 673,484
As a percentage of earning assets:
Interest sensitivity gap (65.8) % 3.8 % 8.3 % 48.1 % 13.0 %
Cumulative sensitivity gap (65.8) % (62.0) % (53.7) % (5.5) % 7.4 %
Liquidity
Liquidity refers to the Company's ability to provide funds at an acceptable cost to meet loan demand and deposit withdrawals, as well as contingency plans to meet unanticipated funding needs or loss of funding sources. These objectives can be met from either the asset or liability side of the balance sheet. Asset liquidity sources consist of the repayments and maturities of loans, selling of loans, short-term money market investments, maturities of securities and sales of securities from the available-for-sale portfolio. These activities are generally summarized as investing activities in the Consolidated Statement of Cash Flows. Net cash from investing activities totaled $82.6 million in 2025. Proceeds from the maturity and sales of investment securities, net of purchases, provided the bulk of the cash flows totaling approximately $271.5 million, in addition to $354.1 million from the net origination and collection of loans outstanding.
Liquidity may also be impacted from liabilities through changes in deposits and borrowings outstanding. These activities are included under financing activities in the Consolidated Statement of Cash Flows. In 2025, financing activities used funds totaling $38.6 million, resulting from a reduction in short term borrowings of $77.9 million, $45.0 million in dividend payment outflows, and an additional $32.0 million allocated toward the repurchase of common stock, partially offset by an increase in deposits totaling $176.3 million. The Company's primary sources of remaining available liquidity from available borrowings and in transit items include the following for the periods indicated:
50 TriCo Bancshares 2025 10-K
(dollars in thousands) December 31, 2025 December 31, 2024
Borrowing capacity at correspondent banks and FRB $ 2,905,789 $ 2,821,678
Less: borrowings outstanding - (75,000)
Unpledged available-for-sale (AFS) investment securities
963,625 1,279,422
Cash held or in transit with FRB
98,067 96,395
Total primary liquidity $ 3,967,481 $ 4,122,495
Estimated uninsured deposit balances $ 2,826,547 $ 2,584,265
At December 31, 2025, the Company's primary sources of liquidity represented 48% of total deposits and 140% of estimated total uninsured (excluding collateralized municipal deposits and intercompany balances) deposits, respectively. As secondary sources of liquidity, the Company's held-to-maturity investment securities had a fair value of $87.0 million, including approximately $3.6 million in net unrealized losses. The Company did not utilize any brokered deposits during 2025 or 2024. While these sources are expected to continue to provide significant amounts of funds in the future, their mix, as well as the possible use of other sources, will depend on future economic and market conditions.
Liquidity is also provided or used through the results of operating activities. In 2025, operating activities provided cash of $133.3 million, primarily from net income of $121.6 million. In 2024, operating activities provided cash of $109.7 million, primarily from net income of $114.9 million.
Loan demand during 2026 will depend in part on economic and competitive conditions. The Company emphasizes the solicitation of non-interest bearing demand deposits and money market checking deposits, which are the least sensitive to interest rates. The outlook for deposit balances during 2025 is also subject to actions from the Federal Reserve, heightened competition, the success of the Company's sales efforts, as well as the delivery of superior customer service and market conditions. The Federal Reserve's recent decrease in Fed Funds rates provided a modest level of relief on deposit margin expense, however, the competitive landscape for attracting and retaining deposit balances will continue to remain challenging during 2025. Therefore, due to concerns such as uncertainty in the general economic environment, political uncertainty, and loan demand, levels of customer deposits are not certain and forecasted changes in those balances are subject to significant volatility and uncertainty. Depending on economic conditions, interest rate levels, and a variety of other conditions, proceeds from the sale or maturity of investment securities may be used to fund loans, or reduce short-term borrowings. At December 31, 2025, we believe the Company has sufficient liquidity and capital resources to meet its cash flow obligations over the foreseeable future.
The principal cash requirements of the Company are dividends on common stock when declared. The Company is dependent upon the payment of cash dividends by the Bank to service its commitments. Shareholder dividends are expected to continue subject to the Board's discretion and continuing evaluation of capital levels, earnings, asset quality and other factors. The Company expects that the cash dividends paid by the Bank to the Company will be sufficient to meet this payment schedule. Dividends from the Bank are subject to certain regulatory restrictions.
The maturity distribution of certificates of deposit in denominations in excess of $250,000 is set forth in the following table. These deposits are generally more rate sensitive than other deposits and, therefore, are more likely to be withdrawn to obtain higher yields elsewhere if available.
Portion of certificates of deposit in excess of $250,000
(dollars in thousands) At December 31, 2025
Time remaining until maturity:
Less than 3 months $ 244,971
3 months to 6 months 22,728
6 months to 12 months 21,539
More than 12 months 1,221
Total $ 290,459
51 TriCo Bancshares 2025 10-K
Loan maturities
Loan demand also affects the Company's liquidity position. The following table presents the maturities of loans, net of deferred loan fees, at December 31, 2025:
Within
One Year 		After One
But Within
Five Years 		After Five But Within 15 Years After 15
Years 		Total
(dollars in thousands)
Loans with predetermined interest rates:
Commercial Real Estate $ 191,546 $ 560,595 $ 743,056 $ 20,022 $ 1,515,219
Consumer 13,442 30,053 83,394 415,383 542,272
Commercial & Industrial 10,073 123,486 84,131 16,634 234,324
Construction 15,379 2,552 10,803 62,686 91,420
Agricultural Production 826 10,971 589 - 12,386
Leases - 4,748 - - 4,748
Total loans with predetermined interest rates 231,266 732,405 921,973 514,725 2,400,369
Loans with floating interest rates:
Commercial Real Estate 136,008 848,502 2,296,362 57,671 3,338,543
Consumer 13,762 75,761 102,530 580,285 772,338
Commercial & Industrial 121,770 52,238 32,131 23,965 230,104
Construction 39,583 50,901 104,410 14,731 209,625
Agricultural Production 123,974 36,131 - 3 160,108
Leases - - - - -
Total loans with floating interest rates 435,097 1,063,533 2,535,433 676,655 4,710,718
Total loans $ 666,363 $ 1,795,938 $ 3,457,406 $ 1,191,380 $ 7,111,087
Investment maturities
The maturity distribution and yields of the investment portfolio at December 31, 2025 is presented in the following tables. The timing of the maturities indicated in the tables below is based on final contractual maturities. Most mortgage-backed securities return principal throughout their contractual lives. As such, the weighted average life of mortgage-backed securities based on outstanding principal balance is usually significantly shorter than the final contractual maturity indicated below. Yields on tax exempt securities are shown on a tax equivalent basis.
Within
One Year 		After One Year
but Through
Five Years 		After Five Years
but Through Ten
Years 		After Ten
Years 		Total
Amount Yield Amount Yield Amount Yield Amount Yield Amount Yield
(dollars in thousands)
Debt Securities Available for Sale
Obligations of US government agencies
$ - - % $ 35,795 3.14 % $ 87,185 1.61 % $ 941,048 2.55 % $ 1,064,028 2.49 %
Obligations of states and political subdivisions
- - % 24,459 3.20 % 93,928 3.08 % 102,299 3.39 % 220,686 3.24 %
Corporate bonds - - % 4,463 8.54 % 495 5.50 % - - % 4,958 8.24 %
Asset backed securities
- - % 4,072 4.60 % 19,082 5.53 % 246,366 5.24 % 269,520 5.25 %
Non-agency collateralized mortgage obligations
- - % - - % - - % 172,739 2.90 % 172,739 2.90 %
Total debt securities available for sale
$ - - % $ 68,789 3.59 % $ 200,690 2.66 % $ 1,462,452 3.07 % $ 1,731,931 3.04 %
Debt Securities Held to Maturity
Obligations of US government agencies
$ 57 1.95 % $ 1,618 2.16 % $ 86,369 2.72 % $ 936 4.19 % 88,980 2.72 %
Obligations of states and political subdivisions
- - % 994 3.56 % 570 3.76 % - - % 1,564 3.63 %
Total debt securities held to maturity
$ 57 1.95 % $ 2,612 2.69 % $ 86,939 2.72 % $ 936 4.19 % $ 90,544 2.74 %
52 TriCo Bancshares 2025 10-K
Off-Balance Sheet Items
The Bank has certain ongoing commitments under leases. See Note 11 of the financial statements at Part II, Item 8 of this report for the terms. These commitments do not significantly impact operating results. As of December 31, 2025, commitments to extend credit and commitments related to the Bank's deposit overdraft privilege product were the Bank's only financial instruments with off-balance sheet risk. The Bank has not entered into any material contracts for financial derivative instruments such as futures, swaps, options, etc. Commitments to extend credit were $2.2 billion and $2.1 billion at December 31, 2025 and 2024, respectively, and represent 31.2% of the total loans outstanding at year-end 2025 versus 32.0% at December 31, 2024. Commitments related to the Bank's deposit overdraft privilege product totaled $125.3 million and $121.0 million at December 31, 2025 and 2024, respectively.
Certain Contractual Obligations
The following chart summarizes certain contractual obligations of the Company as of December 31, 2025:
(dollars in thousands) Total Less than
one year 		1-3
years 		4-5
years 		More than
5 years
Time deposits $ 1,110,042 $ 1,094,810 $ 14,288 $ 944 $ -
Junior subordinated debt:
TriCo Trust I(1)
20,619 - - - 20,619
TriCo Trust II(2)
20,619 - - - 20,619
Operating lease obligations 31,530 6,149 12,814 4,937 7,630
Deferred compensation(3) 2,082 612 853 617 -
Supplemental retirement plans(3) 16,129 1,818 3,076 2,989 8,246
Total contractual obligations $ 1,201,021 $ 1,103,389 $ 31,031 $ 9,487 $ 57,114
(1)Junior subordinated debt, adjustable rate of three-month SOFR plus 3.05%, callable in whole or in part by the Company on a quarterly basis beginning October 7, 2008, matures October 7, 2033.
(2)Junior subordinated debt, adjustable rate of three-month SOFR plus 2.55%, callable in whole or in part by the Company on a quarterly basis beginning July 23, 2009, matures July 23, 2034.
(3)These amounts represent known certain payments to participants under the Company's deferred compensation and supplemental retirement plans. See Note 22 in the financial statements at Part II, Item 8 of this report for additional information related to the Company's deferred compensation and supplemental retirement plan liabilities.
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