TRICO BANCSHARES / 10-Q

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations FORWARD-LOOKING STATEMENTS Cautionary Statements Regarding Forward-Looking Information The statements contained herein that are not historical facts are forward-looking statements based on management’s current expectations and beliefs concerning future developments and their potential effects on us. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond our control. We caution readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. These risks and uncertainties include, but are not limited to, the following: macroeconomic, geopolitical, and other challenges and uncertainties, including those related to actual or potential policies and actions from the new U.S. administration, such as tariffs, and reciprocal actions by other countries or regions, significant volatility and disruptions in financial markets, a resurgence of inflation, increases in unemployment rates, increases in interest rates and slowing economic growth or recession in the U.S. and other countries or regions; the impact of any future federal government shutdown and uncertainty regarding the federal government’s debt limit; the impact of changes in financial services industry policies, laws and regulations; regulatory restrictions or adverse regulatory findings affecting our ability to successfully market and price our products to consumers; adverse developments in the financial services industry generally such as bank failures and any related impact on depositor behavior or investor sentiment; the impacts of international hostilities, wars, terrorism or geopolitical events; risks related to the sufficiency of liquidity, including our ability to attract and maintain deposits; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learning; extreme weather, natural disasters and other catastrophic events and their effects on our customers and the economic and business environments in which we operate; current and future economic and market conditions of the local economies in which we conduct operations; declines in housing and commercial real estate prices and changes in the financial performance and/or condition of our borrowers; the market value of our investment securities and possible other-than-temporary impairment of securities held by us due to changes in credit quality or rates; the availability of, and cost of, sources of funding and the demand for our products; the possibility that our recorded goodwill could become impaired, which may have an adverse impact on our earnings and capital; the costs or effects of mergers, acquisitions or dispositions we may make, as well as whether we are able to obtain any required governmental approvals in connection with any such activities, or identify and complete favorable transactions in the future, and/or realize the anticipated financial and business benefits; the volatility of the stock market and its impact on our stock price and our ability to conduct acquisitions; the regulatory and financial impacts associated with exceeding $10 billion in total assets; the ability to execute our business plan in new markets; our future operating or financial performance, including our outlook for future growth; changes in the level and direction of our nonperforming assets and charge-offs and the appropriateness of the allowance for credit losses; the effectiveness of us managing the mix of earning assets and in improving, resolving or liquidating lower-quality assets; changes in accounting standards and practices; changes in consumer spending, borrowing and savings habits; the effects of changes in the level or cost of checking or savings account deposits on our funding costs and net interest margin; increasing noninterest expense and its impact on our financial performance; competition and innovation with respect to financial products and services by banks, financial institutions and non-traditional competitors including retail businesses and technology companies; the challenges of attracting, integrating and retaining key employees; the impact of the 2023 cyber security ransomware incident, including the pending litigation, on our operations and reputation; the vulnerability of our operational or security systems or infrastructure, the systems of third-party vendors or other service providers with whom we contract, and our customers to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and data/security breaches and the cost to defend against and respond to such incidents; increased data security risks due to work from home arrangements and email vulnerability; failure to safeguard personal information, and any resulting litigation; the effect of a fall in stock market prices on our brokerage and wealth management businesses; the emergence or continuation of widespread health emergencies or pandemics; potential judgments, orders, settlements, penalties, fines and reputational damage resulting from pending or future litigation and regulatory investigations, proceedings and enforcement actions; and our ability to manage the risks involved in the foregoing. In addition, due to the rapidly evolving and changes in U.S. trade policies and practices, the amount and duration of any tariffs and their ultimate impact on us, our customers, financial markets, and the overall U.S. and global economies is currently uncertain. Nonetheless, prolonged uncertainty, elevated tariff levels or their wide-spread use in U.S. trade policy could weaken economic conditions and adversely impact the ability of borrowers to repay outstanding loans or the value of collateral securing these loans or adversely affect financial markets. There can be no assurance that future developments affecting us will be the same as those anticipated by management. Additional factors that could cause results to differ materially from those described above can be found in our filings with the U.S. Securities and Exchange Commission, including without limitation the “Risk Factors” Section of TriCo’s Annual Report on Form 10-K for the year ended December 31, 2024, Such filings are also available in the “Investor Relations” section of our website, https://www.tcbk.com/investor-relations . Annualized, pro forma, projections and estimates are not forecasts and may not reflect actual results. We undertake no obligation (and expressly disclaim any such obligation) to update or alter our forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. General As TriCo Bancshares (referred to in this report as “we”, “our” or the “Company”) has not commenced any business operations independent of Tri Counties Bank (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, net interest income, and net interest yield are generally presented on a FTE basis. The Company believes the use of these non-generally accepted accounting principles (non-GAAP) measures provides additional clarity in assessing its results, and the presentation of these measures 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 in the Part I - Financial Information section of this Form 10-Q, and a reconciliation of the FTE and non-FTE presentations is provided below in the discussion of net interest income. 38 Table of Contents Critical Accounting Policies and Estimates The Company’s discussion and analysis of its financial condition and results of operations are based upon the Company’s consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, including those that materially affect the financial statements and are related to the adequacy of the allowance for loan losses, investments, mortgage servicing rights, fair value measurements, retirement plans and intangible assets. 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. A detailed discussion related to the Company’s accounting policies including those related to estimates on the allowance for credit losses related to loans and investment securities, and impairment of intangible assets, can be found in Note 1 of the consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2024. 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. Financial Highlights Performance highlights and other developments for the Company as of or for the three and nine months ended September 30, 2025, included the following: • Net income was $34.0 million or $1.04 per diluted share as compared to $27.5 million or $0.84 per diluted share in the trailing quarter, and an increase of $5.0 million or 17.1% from the third quarter of 2024 • Net interest income (FTE) was $89.8 million, an increase of $3.0 million or 3.51% over the trailing quarter; net interest margin (FTE) was 3.92% in the recent quarter, an increase of 4 basis points over 3.88% in the trailing quarter • Loan balances increased $47.8 million or 2.7% (annualized) from the trailing quarter and increased $322.9 million or 4.8% from the same quarter of the prior year • Deposit balances decreased $41.3 million or 2.0% (annualized) from the trailing quarter and increased $297.4 million or 3.7% from the same quarter of the prior year • Average yield on earning assets was 5.25%, an increase of 4 basis points over the 5.21% in the trailing quarter; average yield on loans was 5.75%, a decrease of 1 basis points over the 5.76% in the trailing quarter • Non-interest bearing deposits averaged 30.5% of total deposits during the quarter • The average cost of total deposits was 1.39%, an increase of 2 basis points as compared to 1.37% in the trailing quarter, and a decrease of 13 basis points from 1.52% in the same quarter of the prior year • For the quarter ended September 30, 2025, the Company’s return on average assets was 1.36%, while the return on average equity was 10.47%; for the trailing quarter ended June 30, 2025, the Company’s return on average assets was 1.13%, while the return on average equity was 8.68% • Diluted earnings per share were $1.04 for the third quarter of 2025, compared to $0.84 for the trailing quarter and $0.88 during the third quarter of 2024 • The loan to deposit ratio was 84.07% as of September 30, 2025, as compared to 83.08% for the trailing quarter end. Management's ability to maintain this ratio proximate to 85.0% will drive growth in revenue and earnings, as demonstrated in the current period • The efficiency ratio was 56.18% for the quarter ended September 30, 2025, as compared to 59.00% for the trailing quarter • The provision for credit losses was $0.7 million during the quarter ended September 30, 2025, as compared to $4.7 million during the trailing quarter end • The allowance for credit losses (ACL) to total loans was 1.78% as of September 30, 2025, compared to 1.79% as of the trailing quarter end, and 1.85% as of September 30, 2024. Non-performing assets to total assets were 0.72% on September 30, 2025, as compared to 0.68% as of June 30, 2025, and 0.45% at September 30, 2024. At September 30, 2025, the ACL represented 190% of non-performing loans 39 Table of Contents TRICO BANCSHARES Financial Summary (In thousands, except per share amounts; unaudited) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Net interest income $ 89,555 $ 82,611 $ 258,616 $ 247,344 Provision for credit losses (670) (220) (9,063) (4,930) Non-interest income 18,007 16,495 51,170 48,132 Non-interest expense (60,424) (59,487) (181,140) (174,330) Provision for income taxes (12,449) (10,348) (31,659) (30,382) Net income $ 34,019 $ 29,051 $ 87,924 $ 85,834 Per Share Data: Basic earnings per share $ 1.04 $ 0.88 $ 2.68 $ 2.59 Diluted earnings per share $ 1.04 $ 0.88 $ 2.67 $ 2.58 Dividends paid $ 0.36 $ 0.33 $ 1.02 $ 0.99 Book value at period end $ 40.12 $ 37.55 Weighted average common shares outstanding 32,542 32,993 32,749 33,119 Weighted average diluted common shares outstanding 32,723 33,137 32,929 33,251 Shares outstanding at period end 32,507 33,001 At period end: Loans $ 7,006,824 $ 6,683,891 Total investment securities $ 1,856,133 $ 2,116,469 Total assets $ 9,878,836 $ 9,823,890 Total deposits $ 8,334,461 $ 8,037,091 Other borrowings $ 17,039 $ 266,767 Shareholders’ equity $ 1,304,305 $ 1,239,015 Financial Ratios: During the period: Return on average assets (annualized) 1.36 % 1.20 % 1.20 % 1.17 % Return on average equity (annualized) 10.47 % 9.52 % 9.24 % 9.67 % Net interest margin (1) (annualized) 3.92 % 3.71 % 3.84 % 3.69 % Efficiency ratio 56.18 % 60.02 % 58.47 % 59.00 % Average equity to average assets 13.02 % 12.56 % 12.94 % 12.14 % At end of period: Equity to assets 13.20 % 12.61 % Total capital to risk-adjusted assets 15.11 % 15.56 % (1) Fully Taxable Equivalent (FTE) Results of Operations 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 unaudited Condensed Consolidated Financial Statements of the Company and the Notes thereto located at Item 1 of this report. 40 Table of Contents Net Interest Income The Company’s primary source of revenue is net interest income, or the difference between interest income on interest-earning assets and interest expense on interest-bearing liabilities. Following is a summary of the components of FTE net income for the periods indicated. Three months ended (in thousands) September 30, 2025 June 30, 2025 Change % Change Interest income $ 119,987 $ 116,361 $ 3,626 3.1 % Interest expense (30,432) (29,842) (590) 2.0 % Fully tax-equivalent adjustment (FTE) (1) 262 264 (2) (0.8) % Net interest income (FTE) $ 89,817 $ 86,783 $ 3,034 3.5 % Net interest margin (FTE) 3.92 % 3.88 % Acquired loans discount accretion, net: Amount (included in interest income) $ 996 $ 1,247 $ (251) (20.1) % Net interest margin less effect of acquired loan discount accretion (1) 3.88 % 3.82 % 0.06 % Three months ended September 30, (in thousands) 2025 2024 Change % Change Interest income $ 119,987 $ 117,347 $ 2,640 2.2 % Interest expense (30,432) (34,736) 4,304 (12.4) % Fully tax-equivalent adjustment (FTE) (1) 262 269 (7) (2.6) % Net interest income (FTE) $ 89,817 $ 82,880 $ 6,937 8.4 % Net interest margin (FTE) 3.92 % 3.71 % Acquired loans discount accretion, net: Amount (included in interest income) $ 996 $ 1,018 $ (22) (2.2) % Net interest margin less effect of acquired loan discount accretion (1) 3.88 % 3.66 % 0.22 % Nine months ended September 30, (in thousands) 2025 2024 Change % Change Interest income $ 350,425 $ 349,796 $ 629 0.2 % Interest expense (91,809) (102,452) 10,643 (10.4) % Fully tax-equivalent adjustment (FTE) (1) 791 819 (28) (3.4) % Net interest income (FTE) $ 259,407 $ 248,163 $ 11,244 4.5 % Net interest margin (FTE) 3.84 % 3.69 % Acquired loans discount accretion, net: Amount (included in interest income) $ 4,238 $ 3,200 $ 1,038 32.4 % Net interest margin less effect of acquired loan discount accretion (1) 3.78 % 3.64 % 0.14 % (1) Certain information included herein is presented on a 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 this non-generally accepted accounting principles (non-GAAP) measure provides additional clarity in assessing its results, and the presentation of these measures is a common practice within the banking industry. 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. 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. Despite the elevated rate environment, the prepayment rate of portfolio loans, inclusive of those acquired at a premium or discount, remains generally consistent. During the quarters ended September 30, 2025, June 30, 2025 and September 30, 2024, the purchased loan discount accretion was $1.0 million, $1.2 million and $1.0 million, respectively. 41 Table of Contents Summary of Average Balances, Yields/Rates and Interest Differential The following table presents, for the three month periods indicated, information regarding the Company’s consolidated average assets, liabilities and shareholders’ equity, the amounts of interest income from average interest-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 current statutory tax rate (dollars in thousands). Three months ended September 30, 2025 2024 Average Balance Interest Income/ Expense Rates Earned /Paid Average Balance Interest Income/ Expense Rates Earned /Paid Assets: Loans $ 6,971,860 $ 101,004 5.75 % $ 6,690,326 $ 98,085 5.83 % Investment securities - taxable 1,737,273 15,321 3.50 % 1,972,859 17,188 3.47 % Investment securities - nontaxable (1) 132,121 1,134 3.41 % 135,500 1,166 3.42 % Total investments 1,869,394 16,455 3.49 % 2,108,359 18,354 3.46 % Cash at Federal Reserve and other banks 249,646 2,790 4.43 % 93,538 1,177 5.01 % Total interest-earning assets 9,090,900 120,249 5.25 % 8,892,223 117,616 5.26 % Other assets 809,775 774,756 Total assets $ 9,900,675 $ 9,666,979 Liabilities and shareholders’ equity: Interest-bearing demand deposits $ 1,850,733 $ 6,649 1.43 % $ 1,736,442 $ 6,132 1.40 % Savings deposits 2,855,750 12,965 1.80 % 2,686,303 13,202 1.96 % Time deposits 1,107,646 9,587 3.43 % 1,055,612 11,354 4.28 % Total interest-bearing deposits 5,814,129 29,201 1.99 % 5,478,357 30,688 2.23 % Other borrowings 17,495 3 0.07 % 175,268 2,144 4.87 % Junior subordinated debt 71,477 1,228 6.82 % 101,150 1,904 7.49 % Total interest-bearing liabilities 5,903,101 30,432 2.05 % 5,754,775 34,736 2.40 % Noninterest-bearing deposits 2,547,471 2,542,579 Other liabilities 160,568 155,115 Shareholders’ equity 1,289,535 1,214,510 Total liabilities and shareholders’ equity $ 9,900,675 $ 9,666,979 Net interest spread (2) 3.20 % 2.86 % Net interest income and interest margin (3) $ 89,817 3.92 % $ 82,880 3.71 % (1) Fully taxable equivalent (FTE). All yields and rates are calculated using specific day counts for the period and year as applicable. (2) Net interest spread represents 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 i nterest-earning assets, then annualized based on the number of days in the given period . Net interest income (FTE) during the three months ended September 30, 2025, increased $6.9 million or 8.4% to $89.8 million compared to $82.9 million during the three months ended September 30, 2024. Net interest margin totaled 3.92% for the three months ended September 30, 2025, an increase of 21 basis points from the same quarter in 2024. The primary drivers behind the change in net interest margin was related to a reduction in volume and an improvement (decrease) in yield on interest-bearing liabilities, namely, the cost of other borrowings decreased to just 7 basis points following the repayment of all FHLB advances. Further, interest-bearing deposits yield declined by 24 basis points between the quarter ended September 30, 2025, and the same quarter of the prior year. The accretion of discounts from acquired loans added 6 basis points and 6 basis points to loan yields during the quarters ended September 30, 2025 and September 30, 2024, respectively. Finally, the average balance of noninterest-bearing deposits increased by $4.9 million from the three-month average as of September 30, 2025, reversing the recent trends of customers migrating funds to interest-bearing products. 42 Table of Contents Nine months ended September 30, 2025 2024 Average Balance Interest Income/ Expense Rates Earned /Paid Average Balance Interest Income/ Expense Rates Earned /Paid Assets Loans $ 6,876,128 $ 295,077 5.74 % $ 6,755,916 $ 292,799 5.79 % Investments-taxable 1,812,965 45,994 3.39 % 2,034,336 52,021 3.42 % Investments-nontaxable (1) 132,690 3,426 3.45 % 137,515 3,548 3.45 % Total investments 1,945,655 49,420 3.40 % 2,171,851 55,569 3.42 % Cash at Federal Reserve and other banks 200,364 6,719 4.48 % 58,792 2,247 5.11 % Total earning assets 9,022,147 351,216 5.20 % 8,986,559 350,615 5.21 % Other assets, net 807,433 781,406 Total assets $ 9,829,580 $ 9,767,965 Liabilities and shareholders’ equity Interest-bearing demand deposits $ 1,828,709 $ 18,946 1.39 % $ 1,738,876 $ 17,294 1.33 % Savings deposits 2,795,620 37,409 1.79 % 2,670,555 36,362 1.82 % Time deposits 1,110,123 29,749 3.58 % 961,577 29,582 4.11 % Total interest-bearing deposits 5,734,452 86,104 2.01 % 5,371,008 83,238 2.07 % Other borrowings 42,959 1,064 3.31 % 361,175 13,640 5.04 % Junior subordinated debt 91,196 4,641 6.80 % 101,128 5,574 7.36 % Total interest-bearing liabilities 5,868,607 91,809 2.09 % 5,833,311 102,452 2.35 % Noninterest-bearing deposits 2,526,280 2,584,705 Other liabilities 163,015 163,704 Shareholders’ equity 1,271,678 1,186,245 Total liabilities and shareholders’ equity $ 9,829,580 $ 9,767,965 Net interest rate spread (1) (2) 3.11 % 2.86 % Net interest income and margin (1) (3) $ 259,407 3.84 % $ 248,163 3.69 % Net interest income (FTE) during the nine months ended September 30, 2025, increased $11.2 million, or 4.5%, to $259.4 million compared to $248.2 million during the nine months ended September 30, 2024. In addition, net interest margin increased 15 basis points to 3.84%, compared to 3.69% for the same period in the prior year. The increase in net interest income during the nine month period is primarily attributed to a decrease in interest expense; specifically, decreases in the volume of other average borrowings contributed to a decrease in interest expense of $12.0 million. Summary of Changes in Interest Income and Expense due to Changes in Average Asset and Liability Balances and Yields Earned and Rates Paid The following table sets forth, for the period identified, a summary of the changes in 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 not solely attributable to volume or rates have been allocated in proportion to the respective volume and rate components. The following commentary regarding net interest income, interest income and interest expense may be best understood while referencing the Summary of Average Balances, Yields/Rates and Interest Differential and the Summary of Changes in Interest Income and Expense due to Changes in Average Asset and Liability Balances and Yields Earned and Rates Paid shown above. 43 Table of Contents Three months ended September 30, 2025 compared with three months ended September 30, 2024 (in thousands) Volume Rate Total Increase (decrease) in interest income: Loans $ 4,103 $ (1,184) $ 2,919 Investment securities (2,073) 174 (1,899) Cash at Federal Reserve and other banks 1,955 (342) 1,613 Total interest-earning assets 3,985 (1,352) 2,633 Increase (decrease) in interest expense: Interest-bearing demand deposits 400 117 517 Savings deposits 830 (1,067) (237) Time deposits 557 (2,324) (1,767) Other borrowings (1,921) (220) (2,141) Junior subordinated debt (556) (120) (676) Total interest-bearing liabilities (690) (3,614) (4,304) Increase in net interest income $ 4,675 $ 2,262 $ 6,937 Net interest income (FTE) during the three months ended September 30, 2025 increased $6.9 million to $89.8 million compared to $82.9 million during the three months ended September 30, 2024. The increase in net interest income (FTE) was due largely to shifts in the mix of earning assets and funding sources, resulting in a decrease in short-term FHLB borrowings and an increase in loan balances, both of which have a beneficial impact on net interest income. Nine months ended September 30, 2025 compared with nine months ended September 30, 2024 (in thousands) Volume Rate Total Increase (decrease) in interest income: Loans $ 5,220 $ (2,942) $ 2,278 Investment securities (5,803) (346) (6,149) Cash at Federal Reserve and other banks 5,426 (954) 4,472 Total interest-earning assets 4,843 (4,242) 601 Increase (decrease) in interest expense: Interest-bearing demand deposits 896 756 1,652 Savings deposits 1,707 (660) 1,047 Time deposits 4,579 (4,412) 167 Other borrowings (12,029) (547) (12,576) Junior subordinated debt (548) (385) (933) Total interest-bearing liabilities (5,395) (5,248) (10,643) Increase in net interest income $ 10,238 $ 1,006 $ 11,244 Net interest income (FTE) during the nine months ended September 30, 2025 increased $11.2 million to $259.4 million compared to $248.2 million during the nine months ended September 30, 2024. The increase in net interest income (FTE) was nearly entirely due to the decrease in other (short-term FHLB debt) borrowings. Asset Quality and Credit Loss Provisioning During the three months ended September 30, 2025, the Company recorded a provision for credit losses of $0.7 million, as compared to $4.7 million during the trailing quarter, and $0.2 million during the third quarter of 2024. 44 Table of Contents Three months ended Nine months ended (dollars in thousands) September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Addition to allowance for credit losses $ 730 $ 4,525 $ 320 $ 7,918 $ 4,670 Reversal (addition to) reserve for unfunded loan commitments (60) 140 (100) 1,145 260 Total provision for credit losses $ 670 $ 4,665 $ 220 $ 9,063 $ 4,930 The allowance for credit losses (ACL) was $124.6 million or 1.78% of total loans as of September 30, 2025. The provision for credit losses on loans of $0.7 million recorded during the current quarter resulted largely from a need to replenish reserves following net charge-offs of $0.6 million during the quarter. Reserves on individually evaluated loans or loan relationships declined by $0.7 million during the period, while general reserve requirements grew by $0.8 million, resulting in a required net reserve increase of $0.1 million in the quarter. The charge-offs incurred during the quarter ended September 30, 2025, were primarily related to non-performing relationships which had been fully reserved for by Management on an individual basis in previous quarters. Three months ended September 30, Nine months ended September 30, (dollars in thousands) 2025 2024 2025 2024 Balance, beginning of period $ 124,455 $ 123,517 $ 125,366 $ 121,522 Provision for credit losses 730 320 7,918 4,670 Loans charged-off (737) (444) (9,706) (3,329) Recoveries of previously charged-off loans 123 367 993 897 Balance, end of period $ 124,571 $ 123,760 $ 124,571 $ 123,760 The $0.7 million decrease in individually evaluated reserves was largely attributed to the pay-down of loan balances and/or obtaining additional collateral from the largely cooperative borrowers. Observable market valuations associated with agricultural real estate remain consistent as compared to the trailing quarter, while the stable water supply and improving commodity prices for the crops associated with collateral for these loans are reflected by improving cash flows. Management believes the provisioning for these individually analyzed relationships is sufficient relative to expected future losses, if any. The $0.8 million recorded for general reserves is primarily attributed to net loan growth for the quarter of approximately $47.8 million. Additionally, Management notes that economic indicators through the end of the current quarter, as well as actual and forecasted trends including, but not limited to, unemployment, gross domestic product, and corporate borrowing rates continued to evidence stability and were supportive of general economic expansion, and generally consistent with the trailing period ended June 30, 2025, which is aligned with the Company's direct experiences with borrowers. 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. Furthermore, political policy risks both domestic and international are elevated, which may lead to further negative effects on domestic economic outcomes. 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. 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. (dollars in thousands) As of September 30, 2025 % of Loans Outstanding As of June 30, 2025 % of Loans Outstanding As of September 30, 2024 % of Loans Outstanding Risk Rating: Pass $ 6,785,679 96.84 % $ 6,751,005 97.01 % $ 6,461,451 96.67 % Special Mention 89,352 1.28 % 73,215 1.05 % 104,759 1.57 % Substandard 131,793 1.88 % 134,773 1.94 % 117,681 1.76 % Total $ 7,006,824 100.00 % $ 6,958,993 100.00 % $ 6,683,891 100.00 % Classified loans to total loans 1.88 % 1.94 % 1.76 % Loans past due 30+ days to total loans 0.65 % 0.62 % 0.57 % ACL to non-performing loans 189.76 % 192.11 % 297.24 % The ratio of classified loans to total loans of 1.88% as of September 30, 2025, was down 6 basis points from June 30, 2025, and increased 12 basis points from the comparative quarter ended 2024. The change in classified loans outstanding as compared to the trailing quarter represented a decrease of $3.0 million. 45 Table of Contents Loans past due 30 days or more increased by $2.7 million during the quarter ended September 30, 2025, to $45.7 million, as compared to $43.0 million at June 30, 2025. The majority of loans identified as past due are well-secured by collateral, and approximately $28.1 million are less than 90 days delinquent. Non-performing loans increased by $0.8 million during the quarter ended September 30, 2025 to $65.6 million as compared to $64.8 million at June 30, 2025. The credit and collateral profiles of non-performing loans remain generally consistent with the trailing quarter. As noted previously, management continues to proactively work with these borrowers to identify actionable and appropriate resolution strategies which are customary for the industries. We anticipate that these proactive strategies within agriculture commercial real estate loans will further benefit from the continued improvement in agricultural commodity prices, stable water supply, and growing crop demand. Of the $65.6 million loans designated as non-performing as of September 30, 2025, approximately $30.3 million are current or less than 30 days past due with respect to payments required under their existing loan agreements. Management continues to proactively assess the repayment capacity of borrowers that will be subject to rate resets in the near term. To date this analysis as well as management's observations of loans that have experienced a rate reset, have resulted in an insignificant need to provide concessions to borrowers. As of September 30, 2025, other real estate owned consisted of 10 properties with a carrying value of approximately $5.4 million, as compared to 9 properties with a carrying value of $2.7 million at June 30, 2025. Non-performing assets of $71.1 million at September 30, 2025, represented 0.72% of total assets, a change from $67.5 million or 0.68% and $44.4 million or 0.45% as of June 30, 2025 and September 30, 2024, respectively. Non-interest Income The following table summarizes the Company’s non-interest income for the periods indicated (in thousands): Three months ended September 30, (in thousands) 2025 2024 $ Change % Change ATM and interchange fees $ 6,493 $ 6,472 $ 21 0.3 % Service charges on deposit accounts 5,448 4,979 469 9.4 % Other service fees 1,485 1,224 261 21.3 % Mortgage banking service fees 430 439 (9) (2.1) % Change in value of mortgage servicing rights (105) (332) 227 68.4 % Total service charges and fees 13,751 12,782 969 7.6 % Increase in cash value of life insurance 871 786 85 10.8 % Asset management and commission income 1,932 1,502 430 28.6 % Gain on sale of loans 327 549 (222) (40.4) % Lease brokerage income 82 62 20 32.3 % Sale of customer checks 311 303 8 2.6 % (Loss) gain on sale or exchange of investment securities (2,124) 2 (2,126) (106,300.0) % (Loss) gain on marketable equity securities 26 356 (330) (92.7) % Other 2,831 153 2,678 1,750.3 % Total other non-interest income 4,256 3,713 543 14.6 % Total non-interest income $ 18,007 $ 16,495 $ 1,512 9.2 % Non-interest income increased $1.5 million or 9.2% to $18.0 million during the three months ended September 30, 2025, compared to $16.5 million during the comparative quarter ended September 30, 2024. Growth in deposit related transactional activities during the quarter contributed to the elevated service fees, which increased by a combined $0.7 million as compared to the three-month ended September 30, 2024. Further, elevated activity and volume of assets under management drove an increase of $0.4 million or 28.6% in asset management and commission income for the period ended September 30, 2025, as compared to the same period in 2024. 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. As a partial offset, the Company incurred losses on the sale of investment securities totaling approximately $2.1 million, resulting in proceeds of $28.5 million. 46 Table of Contents Nine months ended September 30, (in thousands) 2025 2024 $ Change % Change ATM and interchange fees $ 19,189 $ 19,013 $ 176 0.9 % Service charges on deposit accounts 15,551 14,489 1,062 7.3 % Other service fees 4,329 3,876 453 11.7 % Mortgage banking service fees 1,307 1,305 2 0.2 % Change in value of mortgage servicing rights (297) (468) 171 36.5 % Total service charges and fees 40,079 38,215 1,864 4.9 % Increase in cash value of life insurance 2,533 2,420 113 4.7 % Asset management and commission income 5,055 3,989 1,066 26.7 % Gain on sale of loans 1,174 1,198 (24) (2.0) % Lease brokerage income 198 377 (179) (47.5) % Sale of customer checks 974 916 58 6.3 % Gain (loss) on sale or exchange of investment securities (3,266) (43) (3,223) (7,495.3) % Gain (loss) on marketable equity securities 73 207 (134) (64.7) % Other 4,350 853 3,497 410.0 % Total other non-interest income 11,091 9,917 1,174 11.8 % Total non-interest income $ 51,170 $ 48,132 $ 3,038 6.3 % Non-interest income increased $3.0 million or 6.3% to $51.2 million during the nine months ended September 30, 2025, compared to $48.1 million during the comparative nine months ended September 30, 2024. As noted above increased balances and transaction volume in both deposits and assets under management, service charges and customer fees are elevated in the 2025 period, along with asset management and commission income. Other income increased by $3.5 million due to $2.5 million gain on early extinguishment of subordinated debt mentioned above, in addition to $1.2 million gain on life insurance benefits during the first quarter. As a partial offset, the Company incurred losses on the sale of investment securities totaling approximately $3.2 million, resulting in proceeds of $58.5 million. 47 Table of Contents Non-interest Expense The following table summarizes the Company’s non-interest expense for the periods indicated: Three months ended September 30, (in thousands) 2025 2024 $ Change % Change Base salaries, net of deferred loan origination costs $ 25,340 $ 24,407 $ 933 3.8 % Incentive compensation 5,351 4,361 990 22.7 % Benefits and other compensation costs 7,038 6,782 256 3.8 % Total salaries and benefits expense 37,729 35,550 2,179 6.1 % Occupancy 4,388 4,191 197 4.7 % Data processing and software 4,838 5,258 (420) (8.0) % Equipment 1,269 1,374 (105) (7.6) % Intangible amortization 482 1,030 (548) (53.2) % Advertising 647 1,152 (505) (43.8) % ATM and POS network charges 1,911 1,712 199 11.6 % Professional fees 1,842 1,893 (51) (2.7) % Telecommunications 503 507 (4) (0.8) % Regulatory assessments and insurance 1,282 1,256 26 2.1 % Postage 353 335 18 5.4 % Operational losses 544 603 (59) (9.8) % Courier service 577 542 35 6.5 % (Gain) loss on sale or acquisition of foreclosed assets — 26 (26) (100.0) % Loss (gain) on disposal of fixed assets 21 6 15 250.0 % Other miscellaneous expense 4,038 4,052 (14) (0.3) % Total other non-interest expense 22,695 23,937 (1,242) (5.2) % Total non-interest expense $ 60,424 $ 59,487 $ 937 1.6 % Average full time equivalent staff 1,154 1,161 (7) (0.6) % Total non-interest expense increased $0.9 million or 1.6% to $60.4 million during the three months ended September 30, 2025, as compared to $59.5 million for the quarter ended September 30, 2024. Total salaries and benefits expense increased by $2.2 million or 6.1%, reflecting the increase of $0.9 million in salaries, largely the result of routine merit increases and more recently strategic hiring focused on loan and deposit production; incentive compensation costs also increased by $1.0 million, reflecting elevated levels of loan production and overall Bank performance during the third quarter of 2025, as compared to the equivalent period in 2024. Other non-interest expense line items generally evidenced broad based incremental improvements for the quarter ended September 30, 2025, resulting in a net decrease of $1.2 million. 48 Table of Contents Nine months ended September 30, (in thousands) 2025 2024 $ Change % Change Base salaries, net of deferred loan origination costs $ 76,498 $ 72,279 $ 4,219 5.8 % Incentive compensation 14,612 12,329 2,283 18.5 % Benefits and other compensation costs 21,760 20,647 1,113 5.4 % Total salaries and benefits expense 112,870 105,255 7,615 7.2 % Occupancy 12,665 12,205 460 3.8 % Data processing and software 14,855 15,459 (604) (3.9) % Equipment 3,742 4,060 (318) (7.8) % Intangible amortization 1,479 3,090 (1,611) (52.1) % Advertising 2,659 2,733 (74) (2.7) % ATM and POS network charges 5,605 5,360 245 4.6 % Professional fees 5,027 5,047 (20) (0.4) % Telecommunications 1,504 1,576 (72) (4.6) % Regulatory assessments and insurance 3,862 3,651 211 5.8 % Postage 1,058 983 75 7.6 % Operational losses 1,238 1,199 39 3.3 % Courier service 1,609 1,581 28 1.8 % (Gain) loss on sale or acquisition of foreclosed assets (3) (12) 9 (75.0) % (Gain) loss on disposal of fixed assets 111 12 99 825.0 % Other miscellaneous expense 12,859 12,131 728 6.0 % Total other non-interest expense 68,270 69,075 (805) (1.2) % Total non-interest expense $ 181,140 $ 174,330 $ 6,810 3.9 % Average full time equivalent staff 1,173 1,170 3 0.3 % Non-interest expense increased $6.8 million or 3.9% to $181.1 million during the nine months ended September 30, 2025, as compared to $174.3 million for the nine months ended September 30, 2024. The largest component was salaries and benefits expense which increased $7.6 million or 7.2% to $112.9 million, largely for the reasons mentioned above. Other non-interest expense line items evidenced broad based but incremental decreases, resulting in a net decrease of $0.8 million. Income Taxes The Company’s effective tax rate was 26.8% for the quarter ended September 30, 2025, as compared to 27.2% for the quarter ended June 30, 2025, and 26.3% for the quarter ended September 30, 2024. Differences between the Company's effective tax rate and applicable federal and state blended statutory rate of approximately 29.6% are due to the proportion of non-taxable revenues, non-deductible expenses, and benefits from tax credits as compared to the levels of pre-tax earnings. Financial Condition For financial reporting purposes, the Company does not separately track the changes in assets and liabilities based on branch location or regional geography. The following is a comparison of the quarterly change in certain assets and liabilities: Ending balances September 30, 2025 June 30, 2025 Annualized % Change (dollars in thousands) $ Change Total assets $ 9,878,836 $ 9,923,983 $ (45,147) (1.8) % Total loans 7,006,824 6,958,993 47,831 2.7 Total investments 1,856,133 1,936,954 (80,821) (16.7) Total deposits 8,334,461 8,375,809 (41,348) (2.0) Total other borrowings 17,039 17,788 (749) (16.8) Loans outstanding increased by $47.8 million or 2.7% on an annualized basis during the quarter ended September 30, 2025. During the quarter, loan originations/draws totaled approximately $424.6 million while payoffs/repayments of loans totaled $377.1 million, which compares to originations/draws and payoffs/repayments during the trailing quarter ended of $457.7 million and $329.3 million, respectively. Origination volume was down relative to the robust prior quarter but remains in-line in with forecasted levels. As interest rates continue to contract from the highs experienced in early 2025, and the macro-economic outlook remains optimistic for borrowers following the passage 49 Table of Contents 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. The activity within loan payoffs/repayments, while elevated in the most recent quarter, remains spread amongst numerous borrowers, regions and loan types. Investment security balances decreased $80.8 million or 16.7% on an annualized basis during the quarter as a result of net prepayments/maturities of $143.6 million, and sales of $28.5 million, partially offset by net increases in the market value of securities of $12.8 million and purchases of $73.4 million. Investment security purchases were comprised of fixed rate agency mortgage-backed securities, non-agency collateralized mortgage securities and collateralized loan obligations. While management intends to primarily utilize cash flows from the investment security portfolio and organic deposit growth to support loan growth, excess liquidity will be utilized for purchases of investment securities to support net interest income growth and net interest margin expansion. Deposit balances decreased by $41.3 million or 2.0% annualized during the period due to declines in primarily savings deposit account balances. The following is a comparison of the year over year change in certain assets and liabilities: Ending balances As of September 30, % Change (dollars in thousands) 2025 2024 $ Change Total assets $ 9,878,836 $ 9,823,890 $ 54,946 0.6 % Total loans 7,006,824 6,683,891 322,933 4.8 Total investments 1,856,133 2,116,469 (260,336) (12.3) Total deposits 8,334,461 8,037,091 297,370 3.7 Total other borrowings 17,039 266,767 (249,728) (93.6) Investment Securities The following table presents the available for sale debt securities portfolio by major type as of September 30, 2025 and December 31, 2024: September 30, 2025 December 31, 2024 (in thousands) Fair Value % Fair Value % Debt securities available for sale : Obligations of U.S. government agencies $ 1,062,147 61.0 % $ 1,094,185 57.4 % Obligations of states and political subdivisions 217,599 12.5 % 220,744 11.6 % Corporate bonds 4,880 0.3 % 5,837 0.3 % Asset backed securities 279,364 16.0 % 314,263 16.5 % Non-agency mortgage backed 176,766 10.2 % 269,856 14.2 % Total debt securities available for sale $ 1,740,756 100.0 % $ 1,904,885 100.0 % September 30, 2025 December 31, 2024 (in thousands) Amortized Cost % Amortized Cost % Debt securities held to maturity : Obligations of U.S. government and agencies $ 93,882 98.4 % $ 109,155 97.6 % Obligations of states and political subdivisions 1,564 1.6 % 2,711 2.4 % Total debt securities held to maturity $ 95,446 100.0 % $ 111,866 100.0 % Investment securities held to maturity decreased $16.4 million to $95.4 million as of September 30, 2025, as compared to December 31, 2024. This decrease is attributable to calls and principal repayments of $16.3 million, and amortization of net purchase premiums of $0.1 million. Loans The Company focuses its primary lending activities in six principal areas: commercial real estate loans, consumer loans, commercial and industrial loans, construction loans, agriculture production loans and leases. The interest rates charged for the loans made by the Company vary with the degree of risk, the size and duration of the loans, the borrower’s relationship with the Company and prevailing money market rates indicative of the Company’s cost of funds. The majority of the Company’s loans are direct loans made to individuals, and local or regional businesses which service a variety of industries. The Company relies substantially on local promotional activity and personal contacts by bank officers, directors and employees to 50 Table of Contents compete with other financial institutions. The Company 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. The following table shows the Company’s loan balances, net of deferred loan costs and discounts, as of the dates indicated: (in thousands) September 30, 2025 December 31, 2024 Commercial real estate $ 4,793,394 68.4 % $ 4,577,632 67.6 % Consumer 1,293,909 18.5 % 1,281,059 18.9 % Commercial and industrial 453,221 6.5 % 471,271 7.0 % Construction 298,774 4.3 % 279,933 4.1 % Agriculture production 162,338 2.3 % 151,822 2.3 % Leases 5,188 — % 6,806 0.1 % Total loans $ 7,006,824 100.0 % $ 6,768,523 100.0 % Nonperforming Assets The following tables set forth the amount of the Company’s NPAs as of the dates indicated. “Performing nonaccrual 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: (in thousands) September 30, 2025 December 31, 2024 Performing nonaccrual loans $ 37,545 $ 19,543 Nonperforming nonaccrual loans 23,295 24,493 Total nonaccrual loans 60,840 44,036 Loans 90 days past due and still accruing 4,807 60 Total nonperforming loans 65,647 44,096 Foreclosed assets 5,430 2,786 Total nonperforming assets $ 71,077 $ 46,882 Nonperforming assets to total assets 0.72 % 0.48 % Nonperforming loans to total loans 0.94 % 0.65 % Allowance for credit losses to nonperforming loans 190 % 284 % 51 Table of Contents Changes in nonperforming assets during the three and nine months ended September 30, 2025 (in thousands) Balance at June 30, 2025 New NPA / Valuation Adjustments Pay-downs /Sales /Upgrades Charge-offs/ (1) Write-downs Transfers to Foreclosed Assets Balance at September 30, 2025 Commercial real estate: CRE non-owner occupied $ 3,548 1,787 (89) — — $ 5,246 CRE owner occupied 6,676 1,755 (1,925) — — 6,506 Multifamily 460 — (14) — — 446 Farmland 35,811 3,448 (221) — (2,747) 36,291 Total commercial real estate loans 46,495 6,990 (2,249) — (2,747) 48,489 Consumer SFR 1-4 1st DT liens 6,376 259 (333) — — 6,302 SFR HELOCs and junior liens 4,786 1,368 (370) — — 5,784 Other 318 143 (22) (18) — 421 Total consumer loans 11,480 1,770 (725) (18) — 12,507 Commercial and industrial 1,898 888 (350) (596) — 1,840 Construction 1,914 226 (2) — — 2,138 Agriculture production 2,996 28 (2,351) — — 673 Leases — — — — — — Total nonperforming loans 64,783 9,902 (5,677) (614) (2,747) 65,647 Foreclosed assets 2,683 — — — 2,747 5,430 Total nonperforming assets $ 67,466 9,902 (5,677) (614) — $ 71,077 (1) The table above does not include deposit overdraft charge-offs. Nonperforming assets increased during the three months ended September 30, 2025 by $3.6 million or 5.4% to $71.1 million compared to $67.5 million at June 30, 2025. The increase in nonperforming assets during the third quarter of 2025 was primarily the result of nonperforming loan additions totaling $9.9 million, partially offset by pay-downs and upgrades, which totaled $5.7 million during the quarter, as well as $0.6 million in charge-offs. Management is actively engaged in the collection and recovery efforts for all nonperforming assets and believes that the loan loss reserves associated with these loans is sufficient as of September 30, 2025. (in thousands) Balance at December 31, 2024 New NPA / Valuation Adjustments Pay-downs /Sales /Upgrades Charge-offs/ (1) Write-downs Transfers to Foreclosed Assets Balance at September 30, 2025 Commercial real estate: CRE non-owner occupied $ 3,017 2,390 (161) — — $ 5,246 CRE owner occupied 3,874 8,293 (5,661) — — 6,506 Multifamily 480 — (34) — — 446 Farmland 16,195 23,588 (745) — (2,747) 36,291 Total commercial real estate loans 23,566 34,271 (6,601) — (2,747) 48,489 Consumer SFR 1-4 1st DT liens 5,979 1,393 (1,070) — — 6,302 SFR HELOCs and junior liens 3,868 2,961 (1,045) — — 5,784 Other 204 427 (102) (108) — 421 Total consumer loans 10,051 4,781 (2,217) (108) — 12,507 Commercial and industrial 9,765 1,866 (554) (9,237) — 1,840 Construction 57 2,089 (8) — — 2,138 Agriculture production 657 3,231 (3,204) (11) — 673 Leases — — — — — — Total nonperforming loans 44,096 46,238 (12,584) (9,356) (2,747) 65,647 Foreclosed assets 2,786 — (101) (2) 2,747 5,430 Total nonperforming assets $ 46,882 46,238 (12,685) (9,358) — $ 71,077 52 Table of Contents The Components of the Allowance for Credit Losses for Loans The following table sets forth the allowance for credit losses for loans as of the dates indicated: (in thousands) September 30, 2025 December 31, 2024 September 30, 2024 Allowance for credit losses: Allowance for collectively evaluated loans $ 121,268 $ 120,741 $ 119,032 Allowance for individually evaluated loans 3,303 4,625 4,728 Total allowance for credit losses $ 124,571 $ 125,366 $ 123,760 Allowance for credit losses for loans / total loans 1.78 % 1.85 % 1.85 % For additional information regarding the allowance for loan losses, including changes in specific, formula, and environmental factors allowance categories, see “Asset Quality and Loan Loss Provisioning” at “Results of Operations” , above. For additional information on the current ACL methodology, see "Allowance for Credit Losses - Loans" within footnote 1 of the Company's 10-Q/10-K. Based on the current conditions of the loan portfolio, management believes that the $124.6 million allowance for credit losses at September 30, 2025 is adequate to absorb expected losses inherent in the Bank’s loan portfolio. No assurance can be given, however, that adverse economic conditions or other circumstances will not result in increased losses in the portfolio. The following table summarizes the allocation of the allowance for credit losses between loan types and by percentage of the total allowance for credit losses on loans as of the dates indicated: (in thousands) September 30, 2025 December 31, 2024 September 30, 2024 Commercial real estate $ 75,017 60.2 % $ 72,849 58.1 % $ 71,339 57.6 % Consumer 25,748 20.7 % 27,463 21.9 % 27,504 22.2 % Commercial and industrial 9,090 7.3 % 14,397 11.5 % 14,453 11.7 % Construction 10,792 8.7 % 7,224 5.8 % 7,119 5.8 % Agriculture production 3,901 3.1 % 3,403 2.7 % 3,312 2.7 % Leases 23 0.0 % 30 0.0 % 33 0.0 % Total allowance for credit losses $ 124,571 100.0 % $ 125,366 100.0 % $ 123,760 100.0 % The following table summarizes the allocation of the allowance for credit losses as a percentage of the total loans for each loan category as of the dates indicated: (in thousands) September 30, 2025 December 31, 2024 September 30, 2024 Commercial real estate 1.57 % 1.59 % 1.59 % Consumer 1.99 % 2.14 % 2.14 % Commercial and industrial 2.01 % 3.05 % 2.98 % Construction 3.61 % 2.58 % 2.58 % Agriculture production 2.40 % 2.24 % 2.30 % Leases 0.44 % 0.44 % 0.44 % Total loans 1.78 % 1.85 % 1.85 % 53 Table of Contents The following table summarizes the activity in the allowance for credit losses for the periods indicated: Three months ended September 30, Nine months ended September 30, (in thousands) 2025 2024 2025 2024 Allowance for credit losses: Balance at beginning of period $ 124,455 $ 123,517 $ 125,366 $ 121,522 Provision for credit losses 730 320 7,918 4,670 Loans charged-off: Commercial real estate: CRE non-owner occupied — — — — CRE owner occupied — — — — Multifamily — — — — Farmland — — — — Consumer: SFR 1-4 1st DT liens — — — (26) SFR HELOCs and junior liens — — — (41) Other (142) (170) (459) (538) Commercial and industrial (595) (274) (9,236) (1,274) Construction — — — — Agriculture production — — (11) (1,450) Leases — — — — Total loans charged-off (737) (444) (9,706) (3,329) Recoveries of previously charged-off loans: Commercial real estate: CRE non-owner occupied — — — — CRE owner occupied — 1 1 2 Multifamily — — — — Farmland — — — — Consumer: SFR 1-4 1st DT liens — — — — SFR HELOCs and junior liens 4 196 20 296 Other 30 63 103 184 Commercial and industrial 89 106 255 389 Construction — — — — Agriculture production — 1 614 26 Leases — — — — Total recoveries of previously charged-off loans 123 367 993 897 Net charge-offs (614) (77) (8,713) (2,432) Balance at end of period $ 124,571 $ 123,760 $ 124,571 $ 123,760 Average total loans $ 6,971,860 $ 6,690,326 $ 6,876,128 $ 6,755,916 Ratios (annualized): Net (charge-offs) recoveries during period to average loans outstanding during period (0.01) % — % (0.17) % (0.05) % Provision for credit losses to average loans outstanding during period 0.01 % 0.01 % 0.15 % 0.09 % 54 Table of Contents Foreclosed Assets, Net of Allowance for Losses The following table details the components and summarize the activity in foreclosed assets, net of allowances for losses, for the nine months ended September 30, 2025: (in thousands) Balance at December 31, 2024 Sales Valuation Adjustments Transfers from Loans Balance at September 30, 2025 Land & construction $ 204 $ (100) $ — $ 2,747 $ 2,851 Residential real estate 1,683 — (3) — 1,680 Commercial real estate 899 — — 899 Total foreclosed assets $ 2,786 $ (100) $ (3) $ 2,747 $ 5,430 Deposits During the nine months ended September 30, 2025, the Company’s deposits increased by $246.9 million to $8.3 billion at quarter end. There were no brokered deposits included in the deposit balances as of September 30, 2025 and December 31, 2024. Estimated uninsured deposits totaled $2.7 billion and $2.5 billion as of September 30, 2025 and December 31, 2024, respectively. Off-Balance Sheet Arrangements See Note 9 to the condensed consolidated financial statements at Item 1 of Part I of this report for information about the Company’s commitments and contingencies including off-balance-sheet arrangements. Capital Resources The current and projected capital position of the Company and the impact of capital plans and long-term strategies are reviewed regularly by Management. On February 25, 2021 the Board of Directors authorized the repurchase of 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 actual timing of any share repurchases will be determined by the Company's management and therefore the total value of the shares to be purchased under the 2021 Repurchase Plan is subject to change. The Company may repurchase its outstanding shares of common stock from time to time in open market or privately-negotiated transactions, including block trades, or pursuant to 10b5-1 trading plans. The 2021 Repurchase Plan has no expiration date (in accordance with applicable laws and regulations). During the three and nine months ended September 30, 2025, the Company repurchased 52,106 and 521,738 shares with market values of $2.3 million and $21.3 million, respectively. In addition, the Company’s Tier 1 common equity and tangible capital ratios increased to 13.4% and 10.4%, respectively as of September 30, 2025, compared to 13.2% and 9.7%, respectively, as of December 31, 2024. 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 $2.5 million in share repurchase activity. As a result, the Company’s book value increased to $40.12 per share at September 30, 2025, compared to $38.92 at June 30, 2025. The Company’s tangible book value per share, a non-GAAP measure, calculated by subtracting goodwill and other intangible assets from total shareholders’ equity and dividing that sum by total shares outstanding, was $30.61 per share at September 30, 2025, as compared to $29.40 at June 30, 2025. Changes in the fair value of available-for-sale investment securities, net of deferred taxes, continue to create moderate levels of volatility in tangible book value per share. The following is a comparison of various capital ratios for the current period with the trailing quarter and applicable minimum regulatory requirements. September 30, 2025 December 31, 2024 Ratio Minimum Regulatory Requirement Ratio Minimum Regulatory Requirement Total risk based capital 15.1 % 10.5 % 15.7 % 10.5 % Tier I capital 13.9 % 8.5 % 14.0 % 8.5 % Common equity Tier 1 capital 13.4 % 7.0 % 13.2 % 7.0 % Leverage 11.7 % 4.0 % 11.7 % 4.0 % See Note 10 and Note 16 to the condensed consolidated financial statements at Item 1 of Part I of this report for additional information about the Company’s capital resources. 55 Table of Contents As of September 30, 2025, we had an effective shelf registration statement on file with the Securities and Exchange Commission that allows us to issue various types of debt securities, as well as common stock, preferred stock, warrants, depository shares representing fractional interest in shares of preferred stock, purchase contracts and units from time to time in one or more offerings. Each issuance under the shelf registration statement will require the filing of a prospectus supplement identifying the amount and terms of the securities to be issued. The registration statement does not limit the amount of securities that may be issued thereunder. Our ability to issue securities is subject to market conditions and other factors including, in the case of our debt securities, our credit ratings and compliance with current and prospective covenants in credit agreements. Liquidity The Company's primary sources of liquidity include the following for the periods indicated: (dollars in thousands) September 30, 2025 December 31, 2024 Borrowing capacity at correspondent banks and FRB $ 2,994,052 $ 2,882,859 Less: borrowings outstanding — (367,000) Unpledged available-for-sale investment securities 964,941 1,435,990 Cash held or in transit with FRB 242,806 41,541 Total primary liquidity $ 4,201,799 $ 3,993,390 At September 30, 2025, the Company's primary sources of liquidity represented 50% of total deposits and 154% 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 $91.3 million, including approximately $4.1 million in net unrealized losses. The Company’s profitability during the first nine months of 2025 generated cash flows from operations of $98.8 million compared to $85.5 million during the first nine months of 2024. Net cash used by investing activities was $3.6 million for the nine months ended September 30, 2025, compared to net cash from investing activities of $345.0 million during the nine months ending 2024. Financing activities provided $58.7 million during the nine months ended September 30, 2025, compared to using $209.0 million during the nine months ended September 30, 2024. The types of contractual obligations of the Company and Bank, include but are not limited to term subordinated debt, operating leases, deferred compensation and supplemental retirement plans as well as off-balance sheet commitments such as unfunded loans and letters of credit, are consistent with those as of December 31, 2024. However, as borrowings have been repaid, the borrowing capacity at correspondent banks has increased. In addition, as the balance of investment securities has declined, so has the balance of unpledged securities. In total, and as illustrated above, the balance of total primary liquidity has increased during the first nine months of 2025. The Company is dependent upon the payment of cash dividends by the Bank to service its commitments, which have historically included dividends to shareholders, scheduled debt service payments, and general operations. Shareholder dividends are expected to continue subject to the Board’s discretion and management's 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 cover the Company's cash flow needs. However, the Company and its ability to generate liquidity through either the issuance of stock or debt, also serves as a potential source of strength for the Bank. Dividends paid by the Company to holders of its common stock used $33.4 million and $32.8 million of cash during the nine months ended September 30, 2025 and 2024, respectively. The Company’s liquidity is dependent on dividends received from the Bank. Dividends from the Bank are subject to certain regulatory restrictions. 56 Table of Contents 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 filing contains certain non-GAAP financial measures. Management has presented these non-GAAP financial measures in this filing 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 Nine months ended (dollars in thousands) September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Net interest margin Acquired loans discount accretion, net: Amount (included in interest income) $996 $1,018 $4,238 $3,200 Effect on average loan yield 0.06 % 0.06 % 0.08 % 0.06 % Effect on net interest margin (FTE) 0.04 % 0.05 % 0.06 % 0.05 % Net interest margin (FTE) 3.92 % 3.71 % 3.84 % 3.69 % Net interest margin less effect of acquired loan discount accretion (Non-GAAP) 3.88 % 3.66 % 3.78 % 3.64 % Three months ended Nine months ended (dollars in thousands) September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Pre-tax pre-provision return on average assets or equity Net income (GAAP) $34,019 $29,051 $87,924 $85,834 Exclude provision for income taxes 12,449 10,348 31,659 30,382 Exclude provision for credit losses 670 220 9,063 4,930 Net income before income tax and provision expense (Non-GAAP) $47,138 $39,619 $128,646 $121,146 Average assets (GAAP) $9,900,675 $9,666,979 $9,829,580 $9,767,965 Average equity (GAAP) $1,289,535 $1,214,510 $1,271,678 $1,186,245 Return on average assets (GAAP) (annualized) 1.36 % 1.20 % 1.20 % 1.17 % Pre-tax pre-provision return on average assets (Non-GAAP) (annualized) 1.89 % 1.63 % 1.75 % 1.66 % Return on average equity (GAAP) (annualized) 10.47 % 9.52 % 9.24 % 9.67 % Pre-tax pre-provision return on average equity (Non-GAAP) (annualized) 14.50 % 12.98 % 13.53 % 13.64 % 57 Table of Contents Three months ended Nine months ended (dollars in thousands) September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Return on tangible common equity Average total shareholders' equity $1,289,535 $1,214,510 $1,271,678 $1,186,245 Exclude average goodwill 304,442 304,442 304,442 304,442 Exclude average other intangibles 5,259 8,093 5,741 9,098 Average tangible common equity (Non-GAAP) $979,834 $901,975 $961,495 $872,705 Net income (GAAP) $34,019 $29,051 $87,924 $85,834 Exclude amortization of intangible assets, net of tax effect 339 725 1,041 2,175 Tangible net income available to common shareholders (Non-GAAP) $34,358 $29,776 $88,965 $88,009 Return on average equity (GAAP) (annualized) 10.47 % 9.52 % 9.24 % 9.67 % Return on average tangible common equity (Non-GAAP) 13.91 % 13.13 % 12.37 % 13.47 % As of (dollars in thousands) September 30, 2025 December 31, 2024 Tangible shareholders' equity to tangible assets Shareholders' equity (GAAP) $1,304,305 $1,220,907 Exclude goodwill and other intangible assets, net 309,395 310,874 Tangible shareholders' equity (Non-GAAP) $994,910 $910,033 Total assets (GAAP) $9,878,836 $9,673,728 Exclude goodwill and other intangible assets, net 309,395 310,874 Total tangible assets (Non-GAAP) $9,569,441 $9,362,854 Shareholders' equity to total assets (GAAP) 13.20 % 12.62 % Tangible shareholders' equity to tangible assets (Non-GAAP) 10.40 % 9.72 % As of (dollars in thousands) September 30, 2025 December 31, 2024 Tangible common shareholders' equity per share Tangible shareholders' equity (Non-GAAP) $994,910 $910,033 Common shares outstanding at end of period 32,506,880 32,970,425 Common shareholders' equity (book value) per share (GAAP) $40.12 $37.03 Tangible common shareholders' equity (tangible book value) per share (Non-GAAP) $30.61 $27.60 58 Table of Contents