Trico Bancshares

Total shareholders' equity increased by $37.5 million during the quarter ended September 30, 2025, as net income of $34.0 million and a $16.4 million decrease in accumulated other comprehensive losses were partially offset by $11.7 million in cash dividends on common stock and $2.3 million in share repurchase activity.

SEC original ↗Trico Bancshares — Earnings release (8-K exhibit)EX-99Oct 23, 2025

The net interest margin was further enhanced by reductions in interest expense on junior subordinated debt of $0.7 million as compared to the trailing quarter, resulting from the early extinguishment of subordinated debt with a face value of $57.7 million, a recorded book value of $59.9 million, and a weighted average 5 rate of approximately 6.54% during the period of repayment.

SEC original ↗Trico Bancshares — Earnings release (8-K exhibit)EX-99Oct 23, 2025

Additionally, Management notes that economic indicators through the end of the current quarter, as well as actual and forecasted trends including, but not limited to, unemployment, gross domestic product, and corporate borrowing rates continued to evidence stability and were supportive of general economic expansion, and generally consistent with the trailing period ended June 30, 2025, which is aligned with the Company's direct experiences with borrowers.

SEC original ↗Trico Bancshares — Earnings release (8-K exhibit)EX-99Oct 23, 2025

During the quarter, the Company realized a gain of approximately $2.5 million related to the early retirement of $59.9 million in subordinated debt, recorded within other income.

SEC original ↗Trico Bancshares — Earnings release (8-K exhibit)EX-99Oct 23, 2025

Other income increased by $3.5 million due to $2.5 million gain on early extinguishment of subordinated debt mentioned above, in addition to $1.2 million gain on life insurance benefits during the first quarter.

SEC original ↗Trico Bancshares — Earnings release (8-K exhibit)EX-99Oct 23, 2025

Junior subordinated debt totaling $60.0 million was repaid during the quarter; while on balance sheet liquidity decreased by only $15.5 million to $298.8 million as of September 30, 2025.

SEC original ↗Trico Bancshares — Presentation / slide deck (8-K exhibit)EX-99Oct 23, 2025

While we anticipate crossing the $10 billion threshold in 2026, our ability to execute on our long-term strategies remain our primary focus, said Rick Smith, Chairman and CEO.

SEC original ↗Trico Bancshares — Earnings release (8-K exhibit)EX-99Oct 23, 2025

The migration towards a steepening yield curve will likely contribute positively to net interest income expansion while management remains diligent about controlling expenses despite the persistence of an inflationary environment.

SEC original ↗Trico Bancshares — Earnings release (8-K exhibit)EX-99Oct 23, 2025

As interest rates continue to contract from the highs experienced in early 2025, and the macro-economic outlook remains optimistic for borrowers following the passage of tax and spending legislation that is expected to promote continued economic expansion, in addition to progress made finalizing tariff policies with the United States' largest trade partners.

SEC original ↗Trico Bancshares — Earnings release (8-K exhibit)EX-99Oct 23, 2025

While management intends to primarily utilize cash flows from the investment security portfolio and organic deposit growth to support loan growth, excess liquidity will be utilized for purchases of investment securities to support net interest income growth and net interest margin expansion.

SEC original ↗Trico Bancshares — Earnings release (8-K exhibit)EX-99Oct 23, 2025

The Company continues to manage its cost of deposits through the use of various pricing and product mix strategies.

SEC original ↗Trico Bancshares — Earnings release (8-K exhibit)EX-99Oct 23, 2025

As interest rates continue to contract from the highs experienced in early 2025, and the macro-economic outlook remains optimistic for borrowers following the passage of tax and spending legislation that is expected to promote continued economic expansion, in addition to progress made finalizing tariff policies with the United States' largest trade partners.

SEC original ↗Trico Bancshares — Earnings release (8-K exhibit)EX-99Oct 23, 2025

Steepening of the yield curve or actions by the Federal Reserve to further cut rates during 2025 and beyond may help further improve this outlook overall, but the uncertainty associated with the extent and timing of these potential reductions has inhibited a material change to monetary policy assumptions.

SEC original ↗Trico Bancshares — Earnings release (8-K exhibit)EX-99Oct 23, 2025

The uncertainties related to the nature, duration and potential economic impact of proposed tariffs, while modestly improved since the period ended June 30, 2025, continue to present challenges in correlating potential improvement of credit risks within the Company's loan portfolio.

SEC original ↗Trico Bancshares — Earnings release (8-K exhibit)EX-99Oct 23, 2025

Therefore, in conjunction with most economists' belief that tariffs may have a generally unfavorable impact on the economy as a whole, management continues to believe that certain credit weaknesses are present in the overall economy and that it is appropriate to maintain a reserve level that incorporates such risk factors.

SEC original ↗Trico Bancshares — Earnings release (8-K exhibit)EX-99Oct 23, 2025

Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond our control.

SEC original ↗Trico Bancshares — Earnings release (8-K exhibit)EX-99Oct 23, 2025

These risks and uncertainties include, but are not limited to, the following macroeconomic, geopolitical, and other challenges and uncertainties, including those related to actual or potential policies and actions from the new U.

SEC original ↗Trico Bancshares — Earnings release (8-K exhibit)EX-99Oct 23, 2025