TRICO BANCSHARES / 10-Q

Item 1. Financial Statements (unaudited) TRICO BANCSHARES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data; unaudited) March 31, 2026 December 31, 2025 Assets: Cash and due from banks $ 102,232 $ 92,914 Cash at Federal Reserve and other banks 199,073 64,100 Cash and cash equivalents 301,305 157,014 Investment securities: Marketable equity securities 2,676 2,692 Available for sale debt securities, at fair value (amortized cost of $ 1,923,549 and $ 1,883,412 ) 1,765,472 1,731,931 Held to maturity debt securities, at amortized cost, net of allowance for credit losses of $ 0 85,740 90,544 Restricted equity securities 17,250 17,250 Loans held for sale 4,186 2,695 Loans 7,068,198 7,111,087 Allowance for credit losses ( 127,939 ) ( 125,762 ) Total loans, net 6,940,259 6,985,325 Premises and equipment, net 68,944 69,724 Cash value of life insurance 138,070 137,253 Accrued interest receivable 32,661 33,652 Goodwill 304,442 304,442 Other intangible assets, net 4,041 4,471 Operating leases, right-of-use 24,812 25,505 Other assets 258,353 259,565 Total assets $ 9,948,211 $ 9,822,063 Liabilities and Shareholders’ Equity: Liabilities: Deposits: Noninterest-bearing demand $ 2,559,060 $ 2,594,032 Interest-bearing 5,844,528 5,669,869 Total deposits 8,403,588 8,263,901 Accrued interest payable 7,758 8,795 Operating lease liability 26,525 27,278 Other liabilities 133,621 141,137 Other borrowings 11,455 11,713 Junior subordinated debt 41,238 41,238 Total liabilities 8,624,185 8,494,062 Commitments and contingencies (Note 9) Shareholders’ equity: Preferred stock, no par value: 1,000,000 shares authorized, zero issued and outstanding at March 31, 2026 and December 31, 2025 — — Common stock, no par value: 50,000,000 shares authorized; 31,910,590 and 32,334,974 issued and outstanding at March 31, 2026 and December 31, 2025, respectively 673,507 682,362 Retained earnings 749,769 740,244 Accumulated other comprehensive loss, net of tax ( 99,250 ) ( 94,605 ) Total shareholders’ equity 1,324,026 1,328,001 Total liabilities and shareholders’ equity $ 9,948,211 $ 9,822,063 See accompanying notes to unaudited condensed consolidated financial statements. 3 Table of Contents TRICO BANCSHARES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data; unaudited) Three months ended March 31, 2026 2025 Interest and dividend income: Loans, including fees $ 100,349 $ 95,378 Investments: Taxable securities 13,788 15,373 Tax exempt securities 866 884 Dividends 874 379 Interest bearing cash at Federal Reserve and other banks 1,950 2,063 Total interest and dividend income 117,827 114,077 Interest expense: Deposits 25,923 28,865 Other borrowings 1 969 Junior subordinated debt 677 1,701 Total interest expense 26,601 31,535 Net interest income 91,226 82,542 Provision for credit losses 3,325 3,728 Net interest income after credit loss provision 87,901 78,814 Non-interest income: Service charges and fees 13,160 12,678 Gain on sale of loans 397 344 Gain (loss) on sale or call of investment securities 17 ( 1,146 ) Asset management and commission income 2,049 1,488 Increase in cash value of life insurance 816 820 Other 593 1,889 Total non-interest income 17,032 16,073 Non-interest expense: Salaries and related benefits 36,145 36,855 Other 22,907 22,730 Total non-interest expense 59,052 59,585 Income before provision for income taxes 45,881 35,302 Provision for income taxes 12,196 8,939 Net income $ 33,685 $ 26,363 Per share data: Basic earnings per share $ 1.05 $ 0.80 Diluted earnings per share $ 1.04 $ 0.80 Dividends per share $ 0.36 $ 0.33 CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (In thousands; unaudited) Three months ended March 31, 2026 2025 Net income $ 33,685 $ 26,363 Other comprehensive income, net of tax: Unrealized (losses) gains on available for sale securities arising during the period ( 4,645 ) 22,098 Change in minimum pension liability — — Change in joint beneficiary agreements — — Other comprehensive income ( 4,645 ) 22,098 Comprehensive income $ 29,040 $ 48,461 See accompanying notes to unaudited condensed consolidated financial statements. 4 Table of Contents TRICO BANCSHARES CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (In thousands, except share and per share data; unaudited) Shares of Common Stock Common Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Balance at January 1, 2025 32,970,425 $ 693,462 $ 679,907 $ ( 152,462 ) $ 1,220,907 Net income 26,363 26,363 Other comprehensive income (loss) 22,098 22,098 RSU vesting 797 797 PSU vesting 342 342 RSUs released 21,839 — Repurchase of common stock ( 99,776 ) ( 2,101 ) ( 2,008 ) ( 4,109 ) Dividends paid ($ 0.33 per share) ( 10,879 ) ( 10,879 ) Three months ended March 31, 2025 32,892,488 $ 692,500 $ 693,383 $ ( 130,364 ) $ 1,255,519 Balance at January 1, 2026 32,334,974 $ 682,362 $ 740,244 $ ( 94,605 ) $ 1,328,001 Net income 33,685 33,685 Other comprehensive income (loss) ( 4,645 ) ( 4,645 ) RSU vesting 690 690 PSU vesting 264 264 RSUs released 40,089 — Repurchase of common stock ( 464,473 ) ( 9,809 ) ( 12,614 ) ( 22,423 ) Dividends paid ($ 0.36 per share) ( 11,546 ) ( 11,546 ) Three months ended March 31, 2026 31,910,590 $ 673,507 $ 749,769 $ ( 99,250 ) $ 1,324,026 Balance at January 1, 2025 See accompanying notes to unaudited condensed consolidated financial statements. 5 Table of Contents TRICO BANCSHARES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands; unaudited) For the three months ended March 31, 2026 2025 Operating activities: Net income $ 33,685 $ 26,363 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation of premises and equipment, and amortization 1,615 1,550 Amortization of intangible assets 430 514 Provision for credit losses 3,325 3,728 Amortization of investment securities premium, net 234 402 (Loss) gain on sale of investment securities ( 17 ) 1,146 Originations of loans for sale ( 16,381 ) ( 15,348 ) Proceeds from sale of loans originated for sale 15,165 14,245 Gain on sale of loans ( 397 ) ( 344 ) Change in fair market value of mortgage servicing rights 232 140 (Gain) loss on sale of foreclosed assets — ( 3 ) Operating lease expense payments ( 1,669 ) ( 1,509 ) (Gain) loss on disposal of fixed assets ( 15 ) 85 Increase in cash value of life insurance ( 816 ) ( 820 ) Gain on life insurance death benefit — ( 1,207 ) (Gain) loss on marketable equity securities 17 ( 39 ) Equity compensation vesting expense 954 1,139 Change in: Interest receivable 991 2,274 Interest payable ( 1,037 ) ( 1,816 ) Amortization of operating lease ROUA 1,609 1,452 Other assets and liabilities, net ( 4,223 ) ( 7,438 ) Net cash from operating activities 33,702 24,514 Investing activities: Proceeds from maturities of securities available for sale 47,413 66,753 Proceeds from maturities of securities held to maturity 4,758 4,954 Proceeds from sale and calls of available for sale securities 3,000 30,008 Purchases of securities available for sale ( 90,720 ) ( 14,358 ) Loan origination and principal collections, net 41,375 ( 51,857 ) Proceeds from sale of other real estate owned — 103 Proceeds from sale of premises and equipment 15 — Purchases of premises and equipment ( 712 ) ( 1,687 ) Net cash from investing activities 5,129 33,916 Financing activities: Net change in deposits 139,687 117,756 Net change in other borrowings ( 258 ) 2,096 Repurchase of common stock ( 22,423 ) ( 4,109 ) Dividends paid ( 11,546 ) ( 10,879 ) Net cash from financing activities 105,460 104,864 Net change in cash and cash equivalents 144,291 163,294 Cash and cash equivalents, beginning of period 157,014 144,956 Cash and cash equivalents, end of period $ 301,305 $ 308,250 See accompanying notes to unaudited condensed consolidated financial statements. 6 Table of Contents Supplemental disclosure of noncash activities: Unrealized (loss) gain on securities available for sale $ ( 6,595 ) $ 31,372 Market value of shares tendered in-lieu of cash to pay for exercise of equity and/or related taxes 825 ( 439 ) Obligations incurred in conjunction with leased assets 620 471 Loans transferred to foreclosed assets 721 — Life insurance receivable — 7,582 Supplemental disclosure of cash flow activity: Cash paid for interest expense $ 27,638 $ 33,351 Cash paid for income taxes 2,500 — See accompanying notes to unaudited condensed consolidated financial statements. 7 Table of Contents NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Note 1 - Summary of Significant Accounting Policies Description of Business and Basis of Presentation TriCo Bancshares (the “Company” or “we”) is a California corporation organized to act as a bank holding company for Tri Counties Bank (the “Bank”). The Company and the Bank are headquartered in Chico, California. The Bank is a California-chartered bank that is engaged in the general commercial banking business in 31 California counties. The consolidated financial statements are prepared in accordance with accounting policies generally accepted in the United States of America and general practices in the banking industry. All adjustments necessary for a fair presentation of these consolidated financial statements have been included and are of a normal and recurring nature. The financial statements include the accounts of the Company. All inter-company accounts and transactions have been eliminated in consolidation. The Company maintains two capital subsidiary business trusts (collectively, the “Capital Trusts”), both organized by the Company. For financial reporting purposes, the Company’s remaining investments in the Capital Trusts of $ 1.2 million are accounted for under the equity method and, accordingly, are not consolidated and are included in other assets on the consolidated balance sheet. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. 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. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Annual Report”). The Company believes that the disclosures made are adequate to make the information not misleading. Segment and Significant Group Concentration of Credit Risk The Company grants agribusiness, commercial, consumer, and residential loans to customers located throughout California. The Company has a diversified loan portfolio within the business segments located in this geographical area. While our Chief Executive Officer, the chief operating decision-maker (CODM), may monitor the revenue streams of the various products and services, operations are managed, financial performance is evaluated, and decisions are generally made on a Company-wide basis. Discrete financial information is not available other than on a Company-wide basis. Accordingly, operations are considered by management to be aggregated in one reportable operating segment. 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. Cash and Cash Equivalents Net cash flows are reported for loan and deposit transactions and other borrowings. For purposes of the consolidated statement of cash flows, cash, due from banks with original maturities less than 90 days, interest-earning deposits in other banks, and Federal funds sold are considered to be cash equivalents. Loans Loans that Management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal amount outstanding, net of deferred loan fees and costs. Loan origination and commitment fees and certain direct loan origination costs are deferred, and the net amount is amortized as an adjustment to the related loan’s yield over the actual life of the loan. Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. Loans are placed in nonaccrual status when reasonable doubt exists as to the full, timely collection of interest or principal, or a loan becomes contractually past due by 90 days or more with respect to interest or principal and is not well secured and in the process of collection. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed. Income on such loans is then recognized only to the extent that cash is received and where the future collection of principal is considered probable. Interest accruals 8 Table of Contents are resumed on such loans only when they are brought fully current with respect to interest and principal and when, in the judgment of Management, the loan is estimated to be fully collectible as to both principal and interest. Accrued interest receivable is not included in the calculation of the allowance for credit losses. Allowance for Credit Losses - Securities The Company measures expected credit losses on HTM debt securities on a collective basis by major security type, then further disaggregated by sector and bond rating. Accrued interest receivable on HTM debt securities was considered insignificant at March 31, 2026 and December 31, 2025 and is therefore excluded from the estimate of credit losses. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts based on current and expected changes in credit ratings and default rates. Based on the implied guarantees of the U. S. Government or its agencies related to certain of these investment securities, and the absence of any historical or expected losses, substantially all qualify for a zero loss assumption. Management has 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. As a result of this evaluation, management determined that the expected credit losses associated with these securities is not significant for financial reporting purposes and therefore, no allowance for credit losses has been recognized for any period reported. The Company evaluates AFS 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. In evaluating available for sale debt securities in unrealized loss positions for impairment and the criteria regarding its intent or requirement to sell such securities, the Company considers the extent to which fair value is less than amortized cost, whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuers' financial condition, among other factors. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the ACL when management believes the uncollectability of an available for sale debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. No security credit losses were recognized during the three-month periods ended March 31, 2026 and 2025, respectively. Loans Loans that management has the intent and ability to hold until maturity or payoff are reported at principal amount outstanding, net of deferred loan fees and costs. Loans are placed in nonaccrual status when reasonable doubt exists as to the full, timely collection of interest or principal, or a loan becomes contractually past due by 90 days or more with respect to interest or principal and is not well secured and in the process of collection. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against interest income. Income on such loans is then recognized only to the extent that cash is received and where the future collection of principal is considered probable. Interest accruals are resumed on such loans only when they are brought fully current with respect to interest and principal and when, in the judgment of Management, the loan is estimated to be fully collectible as to both principal and interest. Accrued interest receivable is not included in the calculation of the allowance for credit losses. Allowance for Credit Losses The Company performs an ACL evaluation on its loan and lease portfolio and its HTM and AFS securities portfolios. The ACL on loan and lease portfolio and HTM securities are provided through an expected loss methodology referred to as CECL methodology. The ACL on AFS securities is provided when a credit loss is deemed to have occurred for securities which the Company does not intend to sell or is not required to sell. The CECL methodology also applies to credit exposures on off-balance-sheet loan commitments. Loans The ACL is a valuation account that is deducted from the loan's amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the recorded loan balance is confirmed as uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Regardless of the determination that a charge-off is appropriate for financial accounting purposes, the Company manages its loan portfolio by continually monitoring, where possible, a borrower's ability to pay through the collection of financial information, delinquency status, borrower discussion and the encouragement to repay in accordance with the original contract or modified terms, if appropriate. The ACL consists of two primary components: (1) the determination of an ACL for loans that are individually identified and analyzed and (2) establishment of an ACL for loans collectively analyzed. To determine the collectively analyzed portion of the ACL, the Company identified various portfolio segments based on loan attributes such as, but not limited to; collateral type and loan purpose or use, to ensure loans with similar risk characteristics are measured on a collective basis. The Company utilizes three different loss model configurations and assigned each of the portfolio segments to one of the three loss model configurations. Historical credit loss experience for financial institutions nationwide, paired with relevant forecasts of macroeconomic conditions, forms the basis for the estimate of expected credit losses amongst the collectively analyzed loan portfolio. Further, each of the three loss model configurations utilized by the Company incorporate unique inputs, such as the following: 9 Table of Contents (1) Commercial Real Estate : origination vintage, delinquency status, loan-to-value as of the origination date, stated maturity date, property type, and property status (2) Commercial and Industrial : loan size, credit spread at origination, risk grade, business sector, and loan type (3) Consumer: FICO, origination vintage, product type, and state geography if applicable After quantitative considerations, management evaluates the need for additional qualitative adjustments that consider the expected impact of certain factors not fully captured in the quantitative and macroeconomic reserve calculations. These qualitative adjustments may apply to the collectively analyzed pool as a whole, one or more of the three loss models, or to one or more of the loan portfolio segments. Purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) that are measured at amortized cost, the initial allowance for credit losses is added to the purchase price rather than reported as a provision for credit losses. Subsequent changes in the allowance for credit losses on PCD assets are recognized through the provision for credit losses. HTM Securities For HTM debt securities, the Company measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type, then further disaggregated by sector and bond rating. Accrued interest receivable on held-to-maturity (HTM) debt securities is excluded from the estimate of credit losses. The estimate of expected credit losses considers historical credit loss information that is adjusted for current condition and reasonable and supportable forecasts based on current and expected changes in credit ratings and default rates. Nearly all of the Company's HTM securities are issued by the U. S. Government entities or agencies, and based on the absence of any historical or expected losses, all qualify for a zero loss assumption. Therefore, no allowance for credit losses has been recognized during the three months ended March 31, 2026 and 2025, respectively. AFS 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. In evaluating available for sale debt securities in unrealized loss positions for impairment and the criteria regarding its intent or requirement to sell such securities, the Company considers the extent to which fair value is less than amortized cost, whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuers' financial condition, among other factors. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the ACL when management believes the uncollectability of an available for sale debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. No security credit losses were recognized during the three months ended March 31, 2026 and 2025, respectively. Unfunded commitments The Company is required to include unfunded commitments that are expected to be funded in the future within the allowance for credit loss calculation, other than those that are unconditionally cancellable. To arrive at that reserve, the reserve percentage determined within the same three loss models described above is applied to the unused portion of the expected commitment balance and is multiplied by the expected funding rate. To determine the expected funding rate, the Company uses a historical utilization rate for each segment. The allowance for credit losses for off-balance-sheet credit risk exposures is reported in other liabilities in the condensed consolidated balance sheets. Accounting Standards Update Accounting standards adopted in the current period Standard Summary of Guidance Effects on financial statements None Accounting standards yet to be adopted Standard Summary of Guidance Effects on financial statements ASU 2024-03: Disaggregation of Income Statement Expenses (DISE) • Requires additional disclosure of the nature of expenses included in the income statement to be presented in a tabular format in the footnotes to the financial statements. ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. This standard is not expected to have a material impact on the Company’s financial statements. 10 Table of Contents Note 2 - Investment Securities The amortized cost, estimated fair values and allowance for credit losses of investments in debt securities are summarized in the following tables: March 31, 2026 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Debt Securities Available for Sale Obligations of U.S. government agencies $ 1,232,918 $ 781 $ ( 114,632 ) $ 1,119,067 Obligations of states and political subdivisions 240,093 58 ( 22,721 ) 217,430 Corporate bonds 1,999 — ( 26 ) 1,973 Asset backed securities 261,175 47 ( 1,371 ) 259,851 Non-agency collateralized mortgage obligations 187,364 129 ( 20,342 ) 167,151 Total debt securities available for sale $ 1,923,549 $ 1,015 $ ( 159,092 ) $ 1,765,472 Debt Securities Held to Maturity Obligations of U.S. government agencies $ 84,176 $ 4 $ ( 3,735 ) 80,445 Obligations of states and political subdivisions 1,564 — ( 46 ) 1,518 Total debt securities held to maturity $ 85,740 $ 4 $ ( 3,781 ) $ 81,963 December 31, 2025 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Debt Securities Available for Sale Obligations of U.S. government agencies $ 1,174,813 $ 1,600 $ ( 112,385 ) $ 1,064,028 Obligations of states and political subdivisions 240,199 110 ( 19,623 ) 220,686 Corporate bonds 4,981 3 ( 26 ) 4,958 Asset backed securities 270,817 131 ( 1,428 ) 269,520 Non-agency collateralized mortgage obligations 192,602 209 ( 20,072 ) 172,739 Total debt securities available for sale $ 1,883,412 $ 2,053 $ ( 153,534 ) $ 1,731,931 Debt Securities Held to Maturity Obligations of U.S. government agencies $ 88,980 $ 5 $ ( 3,552 ) $ 85,433 Obligations of states and political subdivisions 1,564 — ( 10 ) 1,554 Total debt securities held to maturity $ 90,544 $ 5 $ ( 3,562 ) $ 86,987 Proceeds from the sale or call of available for sale investment securities totaled $ 3.0 million and $ 30.0 million for the three months ended March 31, 2026 and 2025, respectively, which resulted in gross realized gains of $ 0.02 million and gross realized losses of $ 1.1 million, respectively, during the equivalent periods. Investment securities with an aggregate carrying value of $ 816.4 million and $ 839.6 million at March 31, 2026 and December 31, 2025, respectively, were pledged as collateral for specific borrowings, lines of credit or local agency deposits. The amortized cost and estimated fair value of debt securities at March 31, 2026 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. At March 31, 2026, obligations of the U.S. government and agencies with a cost basis totaling $ 1.2 billion consist almost entirely of residential real estate mortgage-backed securities whose contractual maturity, or principal repayment, will follow the repayment of the underlying mortgages. For purposes of the following table, the entire outstanding balance of these mortgage-backed securities issued by the U.S. government and agencies is categorized based on final maturity date. At March 31, 2026, the Company estimates the average remaining life of these mortgage-backed securities issued by U.S. government corporations and agencies to be approximately 6.28 years. Average remaining life is defined as the time span after which the principal balance has been reduced by half. 11 Table of Contents As of March 31, 2026, the contractual final maturity for available for sale and held to maturity investment securities is as follows: Debt Securities Available for Sale Held to Maturity (in thousands) Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due in one year $ 1,900 $ 1,888 $ 33 $ 33 Due after one year through five years 67,588 65,695 2,890 2,827 Due after five years through ten years 235,387 217,570 81,979 78,294 Due after ten years 1,618,674 1,480,319 838 809 Totals $ 1,923,549 $ 1,765,472 $ 85,740 $ 81,963 Based on an evaluation of available information including security type, counterparty credit quality, past events, current conditions, and reasonable and supportable forecasts that are relevant to collectability of cash flows, as of March 31, 2026, the Company has concluded that it expects to receive all contractual cash flows from each security held in its AFS and HTM debt securities portfolio. There was no allowance for credit losses related to investment securities as of March 31, 2026 or December 31, 2025. Gross unrealized losses on debt securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows: March 31, 2026: Less than 12 months 12 months or more Total (in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Debt Securities Available for Sale Obligations of U.S. government agencies $ 134,910 $ ( 1,579 ) $ 889,543 $ ( 113,053 ) $ 1,024,453 $ ( 114,632 ) Obligations of states and political subdivisions 26,935 ( 667 ) 184,230 ( 22,054 ) 211,165 ( 22,721 ) Corporate bonds 988 ( 11 ) 985 ( 15 ) 1,973 ( 26 ) Asset backed securities 100,021 ( 206 ) 75,142 ( 1,165 ) 175,163 ( 1,371 ) Non-agency collateralized mortgage obligations 10,441 ( 60 ) 127,204 ( 20,282 ) 137,645 ( 20,342 ) Total debt securities available for sale $ 273,295 $ ( 2,523 ) $ 1,277,104 $ ( 156,569 ) $ 1,550,399 $ ( 159,092 ) Debt Securities Held to Maturity Obligations of U.S. government agencies $ — $ — $ 80,287 $ ( 3,735 ) $ 80,287 $ ( 3,735 ) Obligations of states and political subdivisions 1,518 ( 46 ) — — 1,518 ( 46 ) Total debt securities held to maturity $ 1,518 $ ( 46 ) $ 80,287 $ ( 3,735 ) $ 81,805 $ ( 3,781 ) December 31, 2025: Less than 12 months 12 months or more Total (in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Debt Securities Available for Sale Obligations of U.S. government agencies $ 39,263 $ ( 133 ) $ 916,500 $ ( 112,252 ) $ 955,763 $ ( 112,385 ) Obligations of states and political subdivisions 2,874 ( 106 ) 201,382 ( 19,517 ) 204,256 ( 19,623 ) Corporate bonds 495 ( 5 ) 2,229 ( 21 ) 2,724 ( 26 ) Asset backed securities 94,965 ( 161 ) 70,084 ( 1,267 ) 165,049 ( 1,428 ) Non-agency collateralized mortgage obligations 10,524 ( 1 ) 131,873 ( 20,071 ) 142,397 ( 20,072 ) Total debt securities available for sale $ 148,121 $ ( 406 ) $ 1,322,068 $ ( 153,128 ) $ 1,470,189 $ ( 153,534 ) Debt Securities Held to Maturity Obligations of U.S. government agencies $ — $ — $ 85,273 $ ( 3,552 ) $ 85,273 $ ( 3,552 ) Obligations of states and political subdivisions — — 1,555 ( 10 ) 1,555 ( 10 ) Total debt securities held to maturity $ — $ — $ 86,828 $ ( 3,562 ) $ 86,828 $ ( 3,562 ) The following securities had unrealized losses as of December 31, 2025: • Obligations of U.S. government corporations and agencies included 150 debt securities with aggregate depreciation of 10.1 % from the Company’s amortized cost basis. 12 Table of Contents • Obligations of states and political subdivisions included 147 debt securities with aggregate depreciation of 9.7 % from the Company’s amortized cost basis. • Corporate bonds included 3 debt securities with aggregate depreciation of 1.3 % from the Company’s amortized cost basis. • Asset backed securities included 24 debt securities with aggregate depreciation of 0.8 % from the Company’s amortized cost basis. • Non-agency collateralized mortgage obligations included 14 debt securities with aggregate depreciation of 12.9 % from the Company’s amortized cost basis. Based on an evaluation of available information including security type, counterparty credit quality, past events, current conditions, and reasonable and supportable forecasts that are relevant to collectability of cash flows, as of December 31, 2025, the Company has concluded that it expects to receive all contractual cash flows from each security held in its AFS and HTM debt securities portfolio. As such, the unrealized losses on these securities were caused by the changes in market interest rates or the widening of market spreads subsequent to the initial purchase of these securities and are not due to the underlying credit of the issuers. The Company monitors credit quality of debt securities held-to-maturity through the use of credit ratings. The Company monitors the credit rating on a monthly basis. The following table summarizes the amortized cost of debt securities held-to-maturity at the dates indicated, aggregated by credit quality indicator: March 31, 2026 December 31, 2025 (in thousands) AAA/AA/A BBB/BB/B AAA/AA/A BBB/BB/B Obligations of U.S. government agencies $ 84,176 $ — $ 88,980 $ — Obligations of states and political subdivisions 1,564 — 1,564 — Total debt securities held to maturity $ 85,740 $ — $ 90,544 $ — Note 3 – Loans A summary of loan balances at amortized cost are as follows: (in thousands) March 31, 2026 December 31, 2025 Commercial real estate: CRE non-owner occupied $ 2,533,542 $ 2,495,849 CRE owner occupied 1,020,740 1,020,770 Multifamily 1,114,059 1,085,698 Farmland 239,888 251,445 Total commercial real estate loans 4,908,229 4,853,762 Consumer: SFR 1-4 1st DT liens 816,577 842,169 SFR HELOCs and junior liens 429,362 431,772 Other 36,242 40,669 Total consumer loans 1,282,181 1,314,610 Commercial and industrial 465,081 464,428 Construction 262,872 301,045 Agriculture production 145,463 172,494 Leases 4,372 4,748 Total loans, net of deferred loan fees and discounts $ 7,068,198 $ 7,111,087 Total principal balance of loans owed, net of charge-offs $ 7,097,341 $ 7,141,911 Unamortized net deferred loan fees ( 15,600 ) ( 15,896 ) Discounts to principal balance of loans owed, net of charge-offs ( 13,543 ) ( 14,928 ) Total loans, net of unamortized deferred loan fees and discounts $ 7,068,198 $ 7,111,087 Allowance for credit losses on loans $ ( 127,939 ) $ ( 125,762 ) 13 Table of Contents Note 4 – Allowance for Credit Losses For the periods indicated, the following tables summarize the activity in the allowance for credit losses on loans which is recorded as a contra asset, and the reserve for unfunded commitments which is recorded on the balance sheet within other liabilities: Allowance for credit losses – Three months ended March 31, 2026 (in thousands) Beginning Balance Charge-offs Recoveries Provision (benefit) Ending Balance Commercial real estate: CRE non-owner occupied $ 40,300 $ — $ 1 $ 1,346 $ 41,647 CRE owner occupied 12,712 — — 3,574 16,286 Multifamily 17,327 — — ( 943 ) 16,384 Farmland 5,193 — — 400 5,593 Total commercial real estate loans 75,532 — 1 4,377 79,910 Consumer: SFR 1-4 1st DT liens 11,045 — — ( 1,116 ) 9,929 SFR HELOCs and junior liens 13,264 — 7 ( 974 ) 12,297 Other 1,974 ( 221 ) 52 ( 245 ) 1,560 Total consumer loans 26,283 ( 221 ) 59 ( 2,335 ) 23,786 Commercial and industrial 11,430 ( 621 ) 48 1,578 12,435 Construction 8,231 ( 70 ) — 78 8,239 Agriculture production 4,265 — 11 ( 728 ) 3,548 Leases 21 — — — 21 Allowance for credit losses on loans 125,762 ( 912 ) 119 2,970 127,939 Reserve for unfunded commitments 7,745 — — 355 8,100 Total $ 133,507 $ ( 912 ) $ 119 $ 3,325 $ 136,039 ​ The Company consistently seeks to refine its estimation methodology for determining the allowance for credit losses, the effects of which were insignificant during the current period, and are expected to be insignificant in future periods. Management continues to estimate the appropriate level of reserves using all relevant information, from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Management believes the primary risks inherent in the portfolio are a general decline in the economy or GDP, a decline in real estate market values, rising unemployment, increasing vacancy rates, and increases inflation or interest rates in the absence of economic improvement or any other such factors. Any one or a combination of these events may adversely affect a borrower's ability to repay its loan, resulting in increased delinquencies and loan losses. Although Management believes the Company has established and maintained the ACL on loans at appropriate levels, changes in reserves may be necessary if actual economic and other conditions differ substantially from the forecast used in estimating the ACL. ​ For the periods indicated, the following tables summarize the activity in the allowance for credit losses on loans which is recorded as a contra asset, and the reserve for unfunded commitments which is recorded on the balance sheet within other liabilities: 14 Table of Contents Allowance for credit losses – Year ended December 31, 2025 (in thousands) Beginning Balance Charge-offs Recoveries Provision (benefit) Ending Balance Commercial real estate: CRE non-owner occupied $ 37,229 $ — $ 2 $ 3,069 $ 40,300 CRE owner occupied 15,747 — 1 ( 3,036 ) 12,712 Multifamily 15,913 — — 1,414 17,327 Farmland 3,960 ( 1,053 ) — 2,286 5,193 Total commercial real estate loans 72,849 ( 1,053 ) 3 3,733 75,532 Consumer: SFR 1-4 1st DT liens 14,227 — 6 ( 3,188 ) 11,045 SFR HELOCs and junior liens 10,411 — 26 2,827 13,264 Other 2,825 ( 649 ) 138 ( 340 ) 1,974 Total consumer loans 27,463 ( 649 ) 170 ( 701 ) 26,283 Commercial and industrial 14,397 ( 9,338 ) 291 6,080 11,430 Construction 7,224 — — 1,007 8,231 Agriculture production 3,403 ( 11 ) 665 208 4,265 Leases 30 — — ( 9 ) 21 Allowance for credit losses on loans 125,366 ( 11,051 ) 1,129 10,318 125,762 Reserve for unfunded commitments 6,000 — — 1,745 7,745 Total $ 131,366 $ ( 11,051 ) $ 1,129 $ 12,063 $ 133,507 Allowance for credit losses – Three months ended March 31, 2025 (in thousands) Beginning Balance Charge-offs Recoveries Provision (benefit) Ending Balance Commercial real estate: CRE non-owner occupied $ 37,229 $ — $ — $ 2,441 $ 39,670 CRE owner occupied 15,747 — — ( 3,578 ) 12,169 Multifamily 15,913 — — ( 309 ) 15,604 Farmland 3,960 — — 777 4,737 Total commercial real estate loans 72,849 — — ( 669 ) 72,180 Consumer: SFR 1-4 1st DT liens 14,227 — — ( 3,232 ) 10,995 SFR HELOCs and junior liens 10,411 — 12 1,227 11,650 Other 2,825 ( 117 ) 37 150 2,895 Total consumer loans 27,463 ( 117 ) 49 ( 1,855 ) 25,540 Commercial and industrial 14,397 ( 257 ) 106 3,315 17,561 Construction 7,224 — — 3,122 10,346 Agriculture production 3,403 — 613 ( 1,248 ) 2,768 Leases 30 — — ( 2 ) 28 Allowance for credit losses on loans 125,366 ( 374 ) 768 2,663 128,423 Reserve for unfunded commitments 6,000 — — 1,065 7,065 Total $ 131,366 $ ( 374 ) $ 768 $ 3,728 $ 135,488 ​ ​ As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including, but not limited to, trends relating to (i) the level of criticized and classified loans, (ii) net charge-offs, (iii) non-performing loans, and (iv) delinquency within the portfolio. The Company analyzes loans individually to classify the loans as to credit risk and grading. This analysis is performed annually for all outstanding balances greater than $ 1 million and non-homogeneous loans, such as commercial real 15 Table of Contents estate loans, unless other indicators, such as delinquency, trigger more frequent evaluation. Loans below the $ 1 million threshold and homogenous in nature are evaluated as needed for proper grading based on delinquency and borrower credit scores. The Company utilizes a risk grading system to assign a risk grade to each of its loans. Loans are graded on a scale ranging from Pass to Loss. A description of the general characteristics of the risk grades is as follows: • Pass – This grade represents loans ranging from acceptable to very little or no credit risk. These loans typically meet most if not all policy standards in regard to: loan amount as a percentage of collateral value, debt service coverage, profitability, leverage, and working capital. • Special Mention – This grade represents “Other Assets Especially Mentioned” in accordance with regulatory guidelines and includes loans that display some potential weaknesses which, if left unaddressed, may result in deterioration of the repayment prospects for the asset or may inadequately protect the Company’s position in the future. These loans warrant more than normal supervision and attention. • Substandard – This grade represents “Substandard” loans in accordance with regulatory guidelines. Loans within this rating typically exhibit weaknesses that are well defined to the point that repayment is jeopardized. Loss potential is, however, not necessarily evident. The underlying collateral supporting the credit appears to have sufficient value to protect the Company from loss of principal and accrued interest, or the loan has been written down to the point where this is true. There is a definite need for a well-defined workout/rehabilitation program. • Doubtful – This grade represents “Doubtful” loans in accordance with regulatory guidelines. An asset classified as Doubtful has all the weaknesses inherent in a loan classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and financing plans. • Loss – This grade represents “Loss” loans in accordance with regulatory guidelines. A loan classified as Loss is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the loan, even though some recovery may be affected in the future. The portion of the loan that is graded loss should be charged off no later than the end of the quarter in which the loss is identified. Based on the most recent analysis performed, the risk category of loans by class of loans is as follows for the period indicated: Term Loans Amortized Cost Basis by Origination Year – As of March 31, 2026 Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total (in thousands) 2026 2025 2024 2023 2022 Prior Commercial real estate: CRE non-owner occupied risk ratings Pass $ 90,391 $ 261,002 $ 184,047 $ 146,942 $ 412,370 $ 1,273,910 $ 120,079 $ — $ 2,488,741 Special Mention — — 814 14,432 2,310 9,325 105 — 26,986 Substandard — — 1,326 — 1,728 14,761 — — 17,815 Doubtful/Loss — — — — — — — — — Total $ 90,391 $ 261,002 $ 186,187 $ 161,374 $ 416,408 $ 1,297,996 $ 120,184 $ — $ 2,533,542 Year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: CRE owner occupied risk ratings Pass $ 17,790 $ 148,656 $ 79,109 $ 75,368 $ 172,222 $ 435,661 $ 41,419 $ — $ 970,225 Special Mention — 5,743 134 1,015 3,846 6,184 5,186 — 22,108 Substandard — 2,850 — — 7,108 18,167 282 — 28,407 Doubtful/Loss — — — — — — — — — Total $ 17,790 $ 157,249 $ 79,243 $ 76,383 $ 183,176 $ 460,012 $ 46,887 $ — $ 1,020,740 Year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — 16 Table of Contents Term Loans Amortized Cost Basis by Origination Year – As of March 31, 2026 Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total (in thousands) 2026 2025 2024 2023 2022 Prior Commercial real estate: Multifamily risk ratings Pass $ 12,436 $ 91,821 $ 68,110 $ 54,015 $ 216,376 $ 606,871 $ 47,695 $ — $ 1,097,324 Special Mention — — — — — 641 — — 641 Substandard — — — — 3,454 12,640 — — 16,094 Doubtful/Loss — — — — — — — — — Total $ 12,436 $ 91,821 $ 68,110 $ 54,015 $ 219,830 $ 620,152 $ 47,695 $ — $ 1,114,059 Year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Farmland risk ratings Pass $ — $ 8,869 $ 22,818 $ 18,683 $ 33,229 $ 60,895 $ 31,582 $ — $ 176,076 Special Mention — 619 — — 1,937 5,549 489 — 8,594 Substandard — — — 814 9,414 32,516 12,474 — 55,218 Doubtful/Loss — — — — — — — — — Total $ — $ 9,488 $ 22,818 $ 19,497 $ 44,580 $ 98,960 $ 44,545 $ — $ 239,888 Year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer loans: SFR 1-4 1st DT liens risk ratings Pass $ 17,724 $ 78,299 $ 42,240 $ 81,099 $ 157,118 $ 415,225 $ — $ 6,070 $ 797,775 Special Mention — — 1,216 — 573 7,302 — 255 9,346 Substandard — — — 219 278 8,431 — 528 9,456 Doubtful/Loss — — — — — — — — — Total $ 17,724 $ 78,299 $ 43,456 $ 81,318 $ 157,969 $ 430,958 $ — $ 6,853 $ 816,577 Year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer loans: SFR HELOCs and junior liens risk ratings Pass $ 1,417 $ 1,862 $ — $ — $ — $ 49 $ 404,323 $ 6,022 $ 413,673 Special Mention — — — — — — 9,980 233 10,213 Substandard — — — — — — 5,182 294 5,476 Doubtful/Loss — — — — — — — — — Total $ 1,417 $ 1,862 $ — $ — $ — $ 49 $ 419,485 $ 6,549 $ 429,362 Year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer loans: Other risk ratings Pass $ 2,175 $ 1,324 $ 4,513 $ 12,677 $ 3,489 $ 10,111 $ 494 $ — $ 34,783 Special Mention — 74 12 232 1 303 42 — 664 Substandard — — 3 164 291 334 3 — 795 Doubtful/Loss — — — — — — — — — Total $ 2,175 $ 1,398 $ 4,528 $ 13,073 $ 3,781 $ 10,748 $ 539 $ — $ 36,242 Year-to-date gross charge-offs $ — $ 119 $ 12 $ 62 $ 18 $ — $ 10 $ — $ 221 17 Table of Contents Term Loans Amortized Cost Basis by Origination Year – As of March 31, 2026 Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total (in thousands) 2026 2025 2024 2023 2022 Prior Commercial and industrial loans: Commercial and industrial risk ratings Pass $ 21,928 $ 100,689 $ 43,183 $ 32,273 $ 48,125 $ 20,382 $ 180,232 $ 58 $ 446,870 Special Mention — 68 211 3,419 699 108 6,084 — 10,589 Substandard — — 268 91 567 2,959 3,690 47 7,622 Doubtful/Loss — — — — — — — — — Total $ 21,928 $ 100,757 $ 43,662 $ 35,783 $ 49,391 $ 23,449 $ 190,006 $ 105 $ 465,081 Year-to-date gross charge-offs $ — $ 137 $ — $ 19 $ — $ 34 $ 431 $ — $ 621 Construction loans: Construction risk ratings Pass $ 17,974 $ 60,123 $ 96,768 $ 59,628 $ 7,797 $ 19,694 $ — $ — $ 261,984 Special Mention 401 369 — — — — — — 770 Substandard — — — — — 118 — — 118 Doubtful/Loss — — — — — — — — — Total $ 18,375 $ 60,492 $ 96,768 $ 59,628 $ 7,797 $ 19,812 $ — $ — $ 262,872 Year-to-date gross charge-offs $ — $ — $ — $ — $ — $ 70 $ — $ — $ 70 Agriculture production loans: Agriculture production risk ratings Pass $ 258 $ 2,177 $ 705 $ 967 $ 895 $ 7,536 $ 108,730 $ — $ 121,268 Special Mention — — — — — — 23,867 — 23,867 Substandard — — — — 75 196 57 — 328 Doubtful/Loss — — — — — — — — — Total $ 258 $ 2,177 $ 705 $ 967 $ 970 $ 7,732 $ 132,654 $ — $ 145,463 Year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Leases: Lease risk ratings Pass $ 4,372 $ — $ — $ — $ — $ — $ — $ — $ 4,372 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful/Loss — — — — — — — — — Total $ 4,372 $ — $ — $ — $ — $ — $ — $ — $ 4,372 Year-to-date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Total loans outstanding: Risk ratings Pass $ 186,465 $ 754,822 $ 541,493 $ 481,652 $ 1,051,621 $ 2,850,334 $ 934,554 $ 12,150 $ 6,813,091 Special Mention 401 6,873 2,387 19,098 9,366 29,412 45,753 488 113,778 Substandard — 2,850 1,597 1,288 22,915 90,122 21,688 869 141,329 Doubtful/Loss — — — — — — — — — Total $ 186,866 $ 764,545 $ 545,477 $ 502,038 $ 1,083,902 $ 2,969,868 $ 1,001,995 $ 13,507 $ 7,068,198 Year-to-date gross charge-offs $ — $ 256 $ 12 $ 81 $ 18 $ 104 $ 441 $ — $ 912 18 Table of Contents Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2025 Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total (in thousands) 2025 2024 2023 2022 2019 Prior Commercial real estate: CRE non-owner occupied risk ratings Pass $ 262,241 $ 188,789 $ 162,739 $ 417,564 $ 276,975 $ 1,007,772 $ 140,006 $ — $ 2,456,086 Special Mention — 818 12,692 1,634 4,566 3,182 105 — 22,997 Substandard — — — 1,728 — 15,038 — — 16,766 Doubtful/Loss — — — — — — — — — Total $ 262,241 $ 189,607 $ 175,431 $ 420,926 $ 281,541 $ 1,025,992 $ 140,111 $ — $ 2,495,849 Period end gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: CRE owner occupied risk ratings Pass $ 147,249 $ 79,772 $ 76,729 $ 177,644 $ 168,858 $ 301,503 $ 33,540 $ — $ 985,295 Special Mention 8,636 135 361 1,045 237 5,148 5,184 — 20,746 Substandard — — — 7,244 3,176 4,140 169 — 14,729 Doubtful/Loss — — — — — — — — — Total $ 155,885 $ 79,907 $ 77,090 $ 185,933 $ 172,271 $ 310,791 $ 38,893 $ — $ 1,020,770 Period end gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Multifamily risk ratings Pass $ 92,061 $ 68,472 $ 27,502 $ 185,703 $ 288,556 $ 358,396 $ 48,246 $ — $ 1,068,936 Special Mention — — — 3,044 443 202 — — 3,689 Substandard — — — 435 — 12,638 — — 13,073 Doubtful/Loss — — — — — — — — — Total $ 92,061 $ 68,472 $ 27,502 $ 189,182 $ 288,999 $ 371,236 $ 48,246 $ — $ 1,085,698 Period end gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate: Farmland risk ratings Pass $ 8,901 $ 23,038 $ 18,261 $ 34,581 $ 14,831 $ 49,450 $ 35,723 $ — $ 184,785 Special Mention 624 — — 1,937 2,618 2,462 1,978 — 9,619 Substandard — — 816 9,414 20,263 13,252 13,296 — 57,041 Doubtful/Loss — — — — — — — — — Total $ 9,525 $ 23,038 $ 19,077 $ 45,932 $ 37,712 $ 65,164 $ 50,997 $ — $ 251,445 Period end gross write-offs $ — $ — $ — $ — $ 509 $ — $ 544 $ — $ 1,053 Consumer loans: SFR 1-4 1st DT liens risk ratings Pass $ 81,083 $ 45,517 $ 87,492 $ 159,382 $ 218,999 $ 225,410 $ — $ 5,688 $ 823,571 Special Mention — 1,091 — 581 4,642 1,918 — 406 8,638 Substandard — — 219 284 3,313 5,618 — 526 9,960 Doubtful/Loss — — — — — — — — — Total $ 81,083 $ 46,608 $ 87,711 $ 160,247 $ 226,954 $ 232,946 $ — $ 6,620 $ 842,169 Period end gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — 19 Table of Contents Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2025 Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total (in thousands) 2025 2024 2023 2022 2019 Prior Consumer loans: SFR HELOCs and junior liens risk ratings Pass $ 2,116 $ — $ — $ — $ — $ 53 $ 408,407 $ 5,407 $ 415,983 Special Mention — — — — — — 9,482 377 9,859 Substandard — — — — — — 5,604 326 5,930 Doubtful/Loss — — — — — — — — — Total $ 2,116 $ — $ — $ — $ — $ 53 $ 423,493 $ 6,110 $ 431,772 Period end gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer loans: Other risk ratings Pass $ 4,222 $ 4,795 $ 13,717 $ 4,010 $ 4,094 $ 7,489 $ 540 $ — $ 38,867 Special Mention 77 12 202 1 251 153 43 — 739 Substandard — 69 256 303 190 242 3 — 1,063 Doubtful/Loss — — — — — — — — — Total $ 4,299 $ 4,876 $ 14,175 $ 4,314 $ 4,535 $ 7,884 $ 586 $ — $ 40,669 Period end gross write-offs $ 481 $ 65 $ 15 $ — $ — $ 69 $ 19 $ — $ 649 Commercial and industrial loans: Commercial and industrial risk ratings Pass $ 122,819 $ 44,904 $ 35,360 $ 52,018 $ 16,922 $ 6,046 $ 170,194 $ 73 $ 448,336 Special Mention 50 234 2,810 707 — 37 5,330 — 9,168 Substandard — 310 96 618 2,816 342 2,695 47 6,924 Doubtful/Loss — — — — — — — — — Total $ 122,869 $ 45,448 $ 38,266 $ 53,343 $ 19,738 $ 6,425 $ 178,219 $ 120 $ 464,428 Period end gross write-offs $ 510 $ 95 $ — $ — $ 58 $ — $ 8,675 $ — $ 9,338 Construction loans: Construction risk ratings Pass $ 45,182 $ 84,196 $ 104,482 $ 44,172 $ 7,021 $ 13,108 $ — $ — $ 298,161 Special Mention 372 — 1,862 — — — — — 2,234 Substandard — — — — 529 121 — — 650 Doubtful/Loss — — — — — — — — — Total $ 45,554 $ 84,196 $ 106,344 $ 44,172 $ 7,550 $ 13,229 $ — $ — $ 301,045 Period end gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Agriculture production loans: Agriculture production risk ratings Pass $ 1,816 $ 727 $ 1,029 $ 1,409 $ 393 $ 7,282 $ 137,121 $ — $ 149,777 Special Mention — — — — — — 22,079 — 22,079 Substandard — — — 114 237 135 152 — 638 Doubtful/Loss — — — — — — — — — Total $ 1,816 $ 727 $ 1,029 $ 1,523 $ 630 $ 7,417 $ 159,352 $ — $ 172,494 Period end gross write-offs $ — $ — $ — $ — $ — $ 11 $ — $ — $ 11 20 Table of Contents Term Loans Amortized Cost Basis by Origination Year – As of December 31, 2025 Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total (in thousands) 2025 2024 2023 2022 2019 Prior Leases: Lease risk ratings Pass $ 4,748 $ — $ — $ — $ — $ — $ — $ — $ 4,748 Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful/Loss — — — — — — — — — Total $ 4,748 $ — $ — $ — $ — $ — $ — $ — $ 4,748 Period end gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Total loans outstanding: Risk ratings Pass $ 772,438 $ 540,210 $ 527,311 $ 1,076,483 $ 996,649 $ 1,976,509 $ 973,777 $ 11,168 $ 6,874,545 Special Mention 9,759 2,290 17,927 8,949 12,757 13,102 44,201 783 109,768 Substandard — 379 1,387 20,140 30,524 51,526 21,919 899 126,774 Doubtful/Loss — — — — — — — — — Total $ 782,197 $ 542,879 $ 546,625 $ 1,105,572 $ 1,039,930 $ 2,041,137 $ 1,039,897 $ 12,850 $ 7,111,087 Period end gross write-offs $ 991 $ 160 $ 15 $ — $ 567 $ 80 $ 9,238 $ — $ 11,051 The following table shows the ending balance of current and past due originated loans by loan category as of the date indicated: Analysis of Past Due Loans - As of March 31, 2026 (in thousands) 30-59 days 60-89 days > 90 days Total Past Due Loans Current Total Commercial real estate: CRE non-owner occupied $ 1,693 $ — $ 4,690 $ 6,383 $ 2,527,159 $ 2,533,542 CRE owner occupied 338 1,011 4,796 6,145 1,014,595 1,020,740 Multifamily 13,333 506 — 13,839 1,100,220 1,114,059 Farmland 4,744 — 7,012 11,756 228,132 239,888 Total commercial real estate loans 20,108 1,517 16,498 38,123 4,870,106 4,908,229 Consumer: SFR 1-4 1st DT liens 432 1,995 1,296 3,723 812,854 816,577 SFR HELOCs and junior liens — — 1,897 1,897 427,465 429,362 Other 421 91 218 730 35,512 36,242 Total consumer loans 853 2,086 3,411 6,350 1,275,831 1,282,181 Commercial and industrial 1,333 431 2,150 3,914 461,167 465,081 Construction — — 74 74 262,798 262,872 Agriculture production 31 88 57 176 145,287 145,463 Leases 14 — 236 250 4,122 4,372 Total $ 22,339 $ 4,122 $ 22,426 $ 48,887 $ 7,019,311 $ 7,068,198 21 Table of Contents Analysis of Past Due Loans - As of December 31, 2025 (in thousands) 30-59 days 60-89 days > 90 days Total Past Due Loans Current Total Commercial real estate: CRE non-owner occupied $ 1,599 $ 1,728 $ 3,692 $ 7,019 $ 2,488,830 $ 2,495,849 CRE owner occupied 3,261 — 2,189 5,450 1,015,320 1,020,770 Multifamily 687 147 — 834 1,084,864 1,085,698 Farmland — — 10,937 10,937 240,508 251,445 Total commercial real estate loans 5,547 1,875 16,818 24,240 4,829,522 4,853,762 Consumer: SFR 1-4 1st DT liens 832 1,968 1,697 4,497 837,672 842,169 SFR HELOCs and junior liens 516 1,305 1,843 3,664 428,108 431,772 Other 183 19 387 589 40,080 40,669 Total consumer loans 1,531 3,292 3,927 8,750 1,305,860 1,314,610 Commercial and industrial 1,619 522 1,629 3,770 460,658 464,428 Construction — — 603 603 300,442 301,045 Agriculture production — 88 480 568 171,926 172,494 Leases — — — — 4,748 4,748 Total $ 8,697 $ 5,777 $ 23,457 $ 37,931 $ 7,073,156 $ 7,111,087 The following table shows the ending balance of non accrual loans by loan category as of the date indicated: Non Accrual Loans As of March 31, 2026 As of December 31, 2025 (in thousands) Non accrual with no allowance for credit losses Total non accrual Past due 90 days or more and still accruing Non accrual with no allowance for credit losses Total non accrual Past due 90 days or more and still accruing Commercial real estate: CRE non-owner occupied $ 8,610 $ 8,610 $ — $ 7,089 $ 7,089 $ — CRE owner occupied 10,437 17,770 102 7,733 7,733 — Multifamily 427 427 — 435 435 — Farmland 21,793 26,537 — 26,840 31,615 — Total commercial real estate loans 41,267 53,344 102 42,097 46,872 — Consumer: SFR 1-4 1st DT liens 6,388 6,388 — 6,246 6,246 — SFR HELOCs and junior liens 4,516 4,771 — 5,192 5,474 — Other 158 421 — 80 459 — Total consumer loans 11,062 11,580 — 11,518 12,179 — Commercial and industrial 801 3,806 83 1,228 3,976 36 Construction 118 118 — 650 650 — Agriculture production 167 189 — 435 460 45 Leases — 236 — — — — Sub-total 53,415 69,273 185 55,928 64,137 81 Less: Guaranteed loans ( 1,667 ) ( 1,595 ) — ( 1,667 ) ( 1,688 ) — Total, net $ 51,748 $ 67,678 $ 185 $ 54,261 $ 62,449 $ 81 Interest income on non accrual loans that would have been recognized during the three months ended March 31, 2026 and 2025, if all such loans had been current in accordance with their original terms, totaled $ 2.4 million and $ 1.5 million, respectively. Interest income actually recognized on these originated loans during the three months ended March 31, 2026 and 2025 was $ 0.2 million and nominal, respectively. 22 Table of Contents The following tables present the amortized cost basis of collateral dependent loans by class of loans as of the following periods: As of March 31, 2026 (in thousands) Retail Office Warehouse Other Multifamily Farmland SFR-1st Deed SFR-2nd Deed Automobile/Truck A/R and Inventory Equipment Total Commercial real estate: CRE non-owner occupied $ 2,717 $ 3,172 $ — $ 2,721 $ — $ — $ — $ — $ — $ — $ — $ 8,610 CRE owner occupied 14,658 1,399 — 1,713 — — — — — — — 17,770 Multifamily — — — — 427 — — — — — — 427 Farmland — — — — — 26,537 — — — — — 26,537 Total commercial real estate loans 17,375 4,571 — 4,434 427 26,537 — — — — — 53,344 Consumer: SFR 1-4 1st DT liens — — — — — — 6,388 — — — — 6,388 SFR HELOCs and junior liens — — — — — — 1,229 3,357 — — — 4,586 Other — — — — — — — — 423 — — 423 Total consumer loans — — — — — — 7,617 3,357 423 — — 11,397 Commercial and industrial — — — — — — — — — 1,495 2,311 3,806 Construction — — — — — — 118 — — — — 118 Agriculture production — — — 57 — — — — — 23 109 189 Leases — — — — — — — — — — — — Total $ 17,375 $ 4,571 $ — $ 4,491 $ 427 $ 26,537 $ 7,735 $ 3,357 $ 423 $ 1,518 $ 2,420 $ 68,854 As of December 31, 2025 (in thousands) Retail Office Warehouse Other Multifamily Farmland SFR -1st Deed SFR -2nd Deed Automobile/Truck A/R and Inventory Equipment Total Commercial real estate: CRE non-owner occupied $ 2,892 $ 3,195 $ — $ 1,002 $ — $ — $ — $ — $ — $ — $ — $ 7,089 CRE owner occupied 4,564 1,432 — 1,737 — — — — — — — 7,733 Multifamily — — — — 435 — — — — — — 435 Farmland — — — — — 31,615 — — — — — 31,615 Total commercial real estate loans 7,456 4,627 — 2,739 435 31,615 — — — — — 46,872 Consumer: SFR 1-4 1st DT liens — — — — — — 6,246 — — — — 6,246 SFR HELOCs and junior liens — — — — — — 1,579 3,687 — — — 5,266 Other — — — — — — — — 456 — — 456 Total consumer loans — — — — — — 7,825 3,687 456 — — 11,968 Commercial and industrial — — — — — — — — — 1,477 2,499 3,976 Construction — — — 529 — — 121 — — — — 650 Agriculture production — — — 153 — — — — — 25 282 460 Leases — — — — — — — — — — — — Total $ 7,456 $ 4,627 $ — $ 3,421 $ 435 $ 31,615 $ 7,946 $ 3,687 $ 456 $ 1,502 $ 2,781 $ 63,926 23 Table of Contents Modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, forbearance, term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. During the three months ended March 31, 2026 and March 31, 2025, respectively, there were no significant loan modifications made to borrowers experiencing financial difficulty. During the three months ended March 31, 2026 and March 31, 2025, respectively, there were no loans with payment defaults by borrowers experiencing financial difficulty which had material modifications in rate, term or principal forgiveness during the twelve months prior to default. Note 5 - Leases The Company records a ROUA on the consolidated balance sheets for those leases that convey rights to control use of identified assets for a period of time in exchange for consideration. The Company also records a lease liability on the consolidated balance sheets for the present value of future payment commitments. All of the Company’s leases are comprised of operating leases in which the Company is lessee of real estate property for branches, ATM locations, and general administration and operations. The Company has elected not to include short-term leases (i.e. leases with initial terms of 12 month or less) within the ROUA and lease liability. The following table presents the components of lease expense for the periods ended: Three months ended March 31, (in thousands) 2026 2025 Operating lease cost $ 1,564 $ 1,418 Short-term lease cost 50 45 Variable lease (income) cost ( 5 ) ( 10 ) Total lease cost $ 1,609 $ 1,453 The following table presents supplemental cash flow information related to leases for the periods ended: Three months ended March 31, (in thousands) 2026 2025 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 1,669 $ 1,509 ROUA obtained in exchange for operating lease liabilities $ 620 $ 471 The following table presents the weighted average operating lease term and discount rate as of the period ended: March 31, 2026 2025 Weighted-average remaining lease term (years) 7.3 7.6 Weighted-average discount rate 3.86 % 3.56 % At March 31, 2026, future expected operating lease payments are as follows: (in thousands) Periods ending December 31, 2026 $ 4,645 2027 5,677 2028 4,435 2029 3,159 2030 2,751 Thereafter 9,940 30,607 Discount for present value of expected cash flows ( 4,082 ) Lease liability at March 31, 2026 $ 26,525 24 Table of Contents Note 6 - Deposits A summary of the balances of deposits follows: (in thousands) March 31, 2026 December 31, 2025 Noninterest-bearing demand $ 2,559,060 $ 2,594,032 Interest-bearing demand 1,887,823 1,784,769 Savings 2,809,855 2,775,058 Time certificates, $250,000 or more 493,183 484,858 Other time certificates 653,667 625,184 Total deposits $ 8,403,588 $ 8,263,901 Certificate of deposit balances totaling $ 100.0 million from the State of California were included in time certificates, $250,000 or more, at March 31, 2026 and December 31, 2025, respectively. The Company participates in a deposit program offered by the State of California whereby the State may make deposits at the Company’s request subject to collateral and credit worthiness constraints. The negotiated rates on these State deposits are generally more favorable than other wholesale funding sources available to the Company. Overdrawn deposit balances of $ 2.0 million and $ 2.7 million were classified as consumer loans at March 31, 2026 and December 31, 2025, respectively. Note 7 - Other Borrowings A summary of the balances of other borrowings follows: (in thousands) March 31, 2026 December 31, 2025 Other collateralized borrowings, fixed rate, as of March 31, 2026 and December 31, 2025 of 0.05 %, payable on April 1, 2026 and January 1, 2026, respectively 11,455 11,713 Total other borrowings $ 11,455 $ 11,713 Note 8 - Junior Subordinated Debt The following table summarizes the terms and recorded balances of each debenture as of the date indicated: (in thousands) Coupon Rate (Variable) 3 mo. SOFR + As of March 31, 2026 As of December 31, 2025 Subordinated Debt Series Maturity Date Face Value Current Coupon Rate Recorded Book Value Recorded Book Value TriCo Cap Trust I 10/7/2033 $ 20,619 3.05 % 6.98 % $ 20,619 $ 20,619 TriCo Cap Trust II 7/23/2034 20,619 2.55 % 6.48 % 20,619 20,619 $ 41,238 $ 41,238 $ 41,238 Note 9 - Commitments and Contingencies The following table presents a summary of the Bank’s commitments and contingent liabilities: (in thousands) March 31, 2026 December 31, 2025 Financial instruments whose amounts represent risk: Commitments to extend credit: Commercial loans $ 850,816 $ 814,732 Consumer loans 607,292 598,264 Real estate mortgage loans 442,570 432,608 Real estate construction loans 337,779 334,130 Standby letters of credit 39,631 38,986 Deposit account overdraft privilege 128,406 125,317 In April 2024, Visa Inc. announced the commencement of an exchange offer for Visa Class B-1 common stock and the Company subsequently tendered all of its Visa Class B-1 common stock in exchange for a combination of Visa Class B-2 common stock and Visa Class C common stock. Visa Class B-2 common stock continues to be carried at zero. The Bank owns 6,698 shares of Class B-2 common 25 Table of Contents stock of Visa Inc. which may be convertible into Class A common stock at a conversion ratio of 1.5075 per Class B-2 share. As of March 31, 2026, the value of the Class A shares was $ 302.24 per share. Utilizing the conversion ratio, the value of unredeemed Class A equivalent shares owned by the Bank was $ 3.1 million as of March 31, 2026, and has not been reflected in the accompanying consolidated financial statements. Note 10 - Shareholders’ Equity Dividends Paid The Bank paid to the Company cash dividends in the aggregate amounts of $ 11.5 million and $ 12.0 million during the three months ended March 31, 2026 and 2025, respectively. The Bank is regulated by the FDIC and the DFPI. Absent approval from the Commissioner of the DFPI, California banking laws generally limit the Bank’s ability to pay dividends to the lesser of (1) retained earnings or (2) net income for the last three fiscal years, less cash distributions paid during such period. Stock Repurchase Plan The Company's Board of Directors has approved the authorization to repurchase up to 2.0 million shares of the Company's common stock (the 2025 Repurchase Plan or the 2025 Program). The Company’s 2025 Repurchase Plan replaces and supersedes the 2021 Share Repurchase Program which has been terminated as of December 31, 2025. 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 2025 Program is subject to change. The 2025 Program has no expiration date but the Board may suspend or discontinue the program at any time. During the three months ended March 31, 2026, the Company repurchased 447,211 shares with market value totaling $ 21.6 million under the 2025 Program. There were no shares repurchased in 2025 under the 2025 Program, however, during the three months ended March 31, 2025 the Company purchased 89,654 shares with market value of $ 3.7 million under the 2021 Share Repurchase Program. As of March 31, 2026, approximately 1,553,000 shares remain authorized for repurchase. Stock Repurchased Under Equity Compensation Plans The Company's shareholder-approved equity compensation plans permit employees to tender recently vested shares in lieu of cash for the payment of exercise price, if applicable, and the tax withholding on such shares. There were no option exercises during the three months ended March 31, 2026 and March 31, 2025, respectively. Employees tendered 17,262 and 10,122 shares in connection with the tax withholding requirements of other share-based awards during the three months ended March 31, 2026 and 2025, respectively. In total, shares of the Company's common stock tendered had market values of $ 0.8 million and $ 0.4 million during the quarters ended March 31, 2026 and 2025, respectively. The tendered shares were retired. The market value of tendered shares is the last market trade price at closing on the day an option is exercised or the other share-based award vests. Stock repurchased under equity incentive plans are not included in the total of stock repurchased under the 2025 Program. Note 11 - Stock Options and Other Equity-Based Incentive Instruments On April 16, 2024, the Board of Directors adopted the 2024 Equity Incentive Plan (2024 Plan) which was approved by shareholders on May 23, 2024. The 2024 Plan allows for up to 1,200,000 shares to be issued in connection with equity-based incentives. In conjunction with shareholder approval of the 2024 Plan, the 2019 Equity Incentive Plan (2019 Plan), which allowed for up to 1,500,000 shares to be issued in connection with equity-based incentives, is no longer available for grant issuances. While no new awards can be granted under the 2019 Plan, existing grants continue to be governed by the terms, conditions and procedures set forth in any applicable award agreement. There were no stock options outstanding as of March 31, 2026 and December 31, 2025 . Activity related to restricted stock unit awards during the three months ended March 31, 2026 is summarized in the following table: Service Condition Vesting RSUs Market Plus Service Condition Vesting RSUs Outstanding at January 1, 2026 141,089 145,485 RSUs granted 48,867 45,800 RSUs added through dividend and performance credits 934 — RSUs released ( 40,089 ) — RSUs forfeited ( 1,193 ) ( 2,131 ) Outstanding at March 31, 2026 149,608 189,154 26 Table of Contents The 149,608 of service condition vesting RSUs outstanding as of March 31, 2026 include a feature whereby each RSU outstanding is credited with a dividend amount equal to any common stock cash dividend declared and paid, and the credited amount is divided by the closing price of the Company’s stock on the dividend payable date to arrive at an additional amount of RSUs outstanding under the original grant. The dividend credits follow the same vesting requirements as the RSU awards and are not considered participating securities. The 149,608 of service condition vesting RSUs outstanding as of March 31, 2026 are expected to vest, and be released, on a weighted-average basis, over the next 2.26 years. The Company expects to recognize $ 4.5 million of pre-tax compensation costs related to these service condition vesting RSUs between March 31, 2026 and their vesting dates. The Company did not modify any service condition vesting RSUs during the three months ended March 31, 2026 or 2025. The 189,154 of market plus service condition vesting RSUs outstanding as of March 31, 2026 are expected to vest, and be released, on a weighted-average basis, over the next 2.39 years. The Company expects to recognize $ 2.8 million of pre-tax compensation costs related to these RSUs between March 31, 2026 and their vesting dates. As of March 31, 2026, the number of market plus service condition vesting RSUs outstanding that will actually vest, and be released, may be reduced to zero or increased to 283,731 depending on the total return of the Company’s common stock versus the total return of an index of bank stocks from the grant date to the vesting date. The Company did not modify any market plus service condition vesting RSUs during the three months ended March 31, 2026 or 2025. Note 12 - Non-interest Income and Expense The following tables summarize the Company’s non-interest income for the periods indicated: Three months ended March 31, (in thousands) 2026 2025 ATM and interchange fees $ 6,269 $ 6,106 Service charges on deposit accounts 5,209 4,914 Other service fees 1,487 1,359 Mortgage banking service fees 427 439 Change in value of mortgage servicing rights ( 232 ) ( 140 ) Total service charges and fees 13,160 12,678 Increase in cash value of life insurance 816 820 Asset management and commission income 2,049 1,488 Gain on sale of loans 397 344 Lease brokerage income 97 66 Sale of customer checks 364 345 Gain (loss) on sale or exchange of investment securities 17 ( 1,146 ) Gain (loss) on marketable equity securities ( 17 ) 39 Other 149 1,439 Total other non-interest income 3,872 3,395 Total non-interest income $ 17,032 $ 16,073 27 Table of Contents The following tables summarize the Company’s non-interest expense for the periods indicated: Three months ended March 31, (in thousands) 2026 2025 Base salaries, net of deferred loan origination costs $ 24,238 $ 25,401 Incentive compensation 4,726 4,038 Benefits and other compensation costs 7,181 7,416 Total salaries and benefits expense 36,145 36,855 Occupancy 4,459 4,077 Data processing and software 5,287 5,058 Equipment 1,354 1,284 Intangible amortization 430 514 Advertising 835 1,204 ATM and POS network charges 1,668 1,851 Professional fees 1,639 1,518 Telecommunications 442 488 Regulatory assessments and insurance 1,305 1,283 Postage 346 320 Operational losses 520 424 Courier service 520 488 Loss (gain) on sale or acquisition of foreclosed assets — ( 3 ) Loss (gain) on disposal of fixed assets ( 15 ) 85 Other miscellaneous expense 4,117 4,139 Total other non-interest expense 22,907 22,730 Total non-interest expense $ 59,052 $ 59,585 Note 13 - Earnings Per Share Basic earnings per share represent income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustments to income that would result from assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options and restricted stock units (RSUs), and are determined using the treasury stock method. Earnings per share have been computed based on the following: Three months ended March 31, (in thousands) 2026 2025 Net income $ 33,685 $ 26,363 Weighted average number of common shares outstanding 32,195 32,953 Effect of dilutive stock options and restricted stock 196 176 Weighted average number of common shares outstanding used to calculate diluted earnings per share 32,391 33,129 Options excluded from diluted earnings per share because of their antidilutive effect — — Note 14 – Comprehensive (Loss) Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the equity section of the balance sheet identified as AOCI, such items, along with net income, are components of OCI. 28 Table of Contents The components of OCI and related tax effects are as follows: Three months ended March 31, (in thousands) 2026 2025 Unrealized holding (losses) gains on available for sale securities before reclassifications $ ( 6,579 ) $ 32,518 Amounts reclassified out of AOCI: Realized gain (loss) on debt securities ( 17 ) ( 1,146 ) Total amounts reclassified out of accumulated other comprehensive income (loss) ( 17 ) ( 1,146 ) Unrealized holding (losses) gains on available for sale securities after reclassifications ( 6,596 ) 31,372 Tax effect 1,951 ( 9,274 ) Unrealized holding (losses) gains on available for sale securities, net of tax ( 4,645 ) 22,098 Change in unfunded status of the supplemental retirement plans before reclassifications 174 164 Amounts reclassified out of AOCI: Amortization of actuarial losses ( 174 ) ( 164 ) Total amounts reclassified out of accumulated other comprehensive loss ( 174 ) ( 164 ) Total other comprehensive (loss) income $ ( 4,645 ) $ 22,098 The components of AOCI, included in shareholders’ equity, are as follows: (in thousands) March 31, 2026 December 31, 2025 Net unrealized loss on available for sale securities $ ( 158,077 ) $ ( 151,481 ) Tax effect 46,734 44,783 Unrealized holding loss on available for sale securities, net of tax ( 111,343 ) ( 106,698 ) Unfunded status of the supplemental retirement plans 16,129 16,129 Tax effect ( 4,768 ) ( 4,768 ) Unfunded status of the supplemental retirement plans, net of tax 11,361 11,361 Joint beneficiary agreement liability 732 732 Tax effect — — Joint beneficiary agreement liability, net of tax 732 732 Accumulated other comprehensive loss $ ( 99,250 ) $ ( 94,605 ) Note 15 - Fair Value Measurement The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In estimating fair value, the Company utilizes valuation techniques that are consistent with the market approach, income approach, and/or the cost approach. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability including assumptions about the risk inherent in a particular valuation technique, the effect of a restriction on the sale or use of an asset and the risk of nonperformance. Marketable equity securities, trading securities, debt securities available-for-sale, loans held for sale, and mortgage servicing rights are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such loans held for investment and certain other assets. These nonrecurring fair value adjustments typically involve application impairment write-downs of individual assets. The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the observable nature of the assumptions used to determine fair value. These levels are: Level 1 - Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2 - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 - Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. Marketable equity securities, trading securities and debt securities available for sale - Marketable equity, trading and debt securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted 29 Table of Contents prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities issued by government sponsored entities, municipal bonds and corporate debt securities. The Company had no securities classified as Level 3 during any of the periods covered in these consolidated financial statements. Loans held for sale - Loans held for sale are carried at the lower of cost or fair value. The fair value of loans held for sale is based on what secondary markets are currently offering for loans with similar characteristics. As such, we classify those loans subjected to recurring fair value adjustments as Level 2. Collateral dependent loans - Loans are not recorded at fair value on a recurring basis. However, from time to time, certain loans have individual risk characteristics not consistent with a pool of loans and is individually evaluated for credit reserves. Loans for which it is probable that payment of interest and principal will not be made in accordance with the original contractual terms of the loan agreement are typically individually evaluated. The fair value of these loans are estimated using one of several methods, including collateral value, fair value of similar debt, enterprise value, liquidation value and discounted cash flows. Those loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. Loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value which uses substantially observable data, the Company records the loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value, or the appraised value contains a significant unobservable assumption, such as deviations from comparable sales, and there is no observable market price, the Company records the loan as nonrecurring Level 3. Foreclosed assets - Foreclosed assets include assets acquired through, or in lieu of, loan foreclosure. Foreclosed assets are held for sale and are initially recorded at fair value at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, management periodically performs valuations and the assets are carried at the lower of carrying amount or fair value less cost to sell. When the fair value of foreclosed assets is based on an observable market price or a current appraised value which uses substantially observable data, the Company records the loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value, or the appraised value contains a significant unobservable assumption, such as deviations from comparable sales, and there is no observable market price, the Company records the foreclosed asset as nonrecurring Level 3. Revenue and expenses from operations and changes in the valuation allowance are included in other non-interest expense. Mortgage servicing rights - Mortgage servicing rights are carried at fair value. A valuation model, which utilizes a discounted cash flow analysis using a discount rate and prepayment speed assumptions is used in the computation of the fair value measurement. While the prepayment speed assumption is currently quoted for comparable instruments, the discount rate assumption currently requires a significant degree of management judgment and is therefore considered an unobservable input. As such, the Company classifies mortgage servicing rights subjected to recurring fair value adjustments as Level 3. The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis (in thousands): Fair value at March 31, 2026 Total Level 1 Level 2 Level 3 Marketable equity securities $ 2,676 $ 2,676 $ — $ — Debt securities available for sale: Obligations of U.S. government and agencies 1,119,067 — 1,119,067 — Obligations of states and political subdivisions 217,430 — 217,430 — Corporate bonds 1,973 — 1,973 — Asset backed securities 259,851 — 259,851 — Non-agency mortgage backed securities 167,151 — 167,151 — Loans held for sale 4,186 — 4,186 — Mortgage servicing rights 6,530 — — 6,530 Total assets measured at fair value $ 1,778,864 $ 2,676 $ 1,769,658 $ 6,530 30 Table of Contents Fair value at December 31, 2025 Total Level 1 Level 2 Level 3 Marketable equity securities $ 2,692 $ 2,692 $ — $ — Debt securities available for sale: Obligations of U.S. government and agencies 1,064,028 — 1,064,028 — Obligations of states and political subdivisions 220,686 — 220,686 — Corporate bonds 4,958 — 4,958 — Asset backed securities 269,520 — 269,520 — Non-agency mortgage backed securities 172,739 — 172,739 — Loans held for sale 2,695 — 2,695 — Mortgage servicing rights 6,640 — — 6,640 Total assets measured at fair value $ 1,743,958 $ 2,692 $ 1,734,626 $ 6,640 Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally corresponds with the Company’s quarterly valuation process. There were no transfers between any levels during the three months ended March 31, 2026 or March 31, 2025, respectively. The following table provides a reconciliation of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the time periods indicated. Had there been any transfer into or out of Level 3 during the time periods indicated, the amount included in the “Transfers into (out of) Level 3” column would represent the beginning balance of an item in the period (interim quarter) during which it was transferred (in thousands): Three months ended March 31, Beginning Balance Transfers into (out of) Level 3 Change Included in Earnings Issuances Ending Balance 2026: Mortgage servicing rights $ 6,640 — $ ( 232 ) $ 122 $ 6,530 2025: Mortgage servicing rights $ 6,626 — $ ( 140 ) $ 128 $ 6,614 Three months ended March 31, The key unobservable inputs used in determining the fair value of mortgage servicing rights are mortgage prepayment speeds and the discount rate used to discount cash projected cash flows. Generally, any significant increases in the mortgage prepayment speed and discount rate utilized in the fair value measurement of the mortgage servicing rights will result in a negative fair value adjustments (and decrease in the fair value measurement). Conversely, a decrease in the mortgage prepayment speed and discount rate will result in a positive fair value adjustment (and increase in the fair value measurement). The following table presents quantitative information about recurring Level 3 fair value measurements at March 31, 2026 and December 31, 2025: As of March 31, 2026: Fair Value (in thousands) Valuation Technique Unobservable Inputs Range, Weighted Average Mortgage Servicing Rights $ 6,530 Discounted cash flow Constant prepayment rate 6 % - 12 %; 7.0 % Discount rate 10 % - 14 %; 12 % As of December 31, 2025: Mortgage Servicing Rights $ 6,640 Discounted cash flow Constant prepayment rate 6 % - 12.0 %; 7.0 % Discount rate 10 % - 14 %; 12 % The tables below present the recorded investment in assets and liabilities measured at fair value on a nonrecurring basis, as of the dates indicated, that had a write-down or an additional allowance provided during the periods indicated (in thousands): March 31, 2026 Total Level 1 Level 2 Level 3 Fair value: Collateral dependent loans $ 7,877 — — $ 7,877 Foreclosed assets 721 — — 721 Total assets measured at fair value $ 8,598 — — $ 8,598 31 Table of Contents December 31, 2025 Total Level 1 Level 2 Level 3 Fair value: Collateral dependent loans $ 7,545 — — $ 7,545 Foreclosed assets 3,562 — — 3,562 Total assets measured at fair value $ 11,107 — — $ 11,107 The tables below present the net losses resulting from non-recurring fair value adjustments of assets and liabilities for the periods indicated (in thousands): Three months ended March 31, 2026 2025 Collateral dependent loans $ ( 1,687 ) $ ( 5,013 ) Foreclosed assets — — Total losses from non-recurring measurements $ ( 1,687 ) $ ( 5,013 ) The individually evaluated loan amounts above represent collateral dependent loans that have been adjusted to fair value. When the Company identifies a collateral dependent loan with unique risk characteristics, the Company evaluates the need for an allowance using the current fair value of the collateral, less selling costs. Depending on the characteristics of a loan, the fair value of collateral is generally estimated by obtaining external appraisals. If the Company determines that the value of the loan is less than the recorded investment in the loan, the Company recognizes this impairment and adjust the carrying value of the loan to fair value through the allowance for credit losses. The loss represents charge-offs or impairments on collateral dependent loans for fair value adjustments based on the fair value of collateral. The carrying value of loans fully charged-off is zero . The foreclosed assets amounts above represents impaired real estate that has been adjusted to fair value. Foreclosed assets represent real estate which the Company has taken control of in partial or full satisfaction of loans. At the time of foreclosure, other real estate owned is recorded at fair value less costs to sell, which becomes the property’s new basis. Any write-downs based on the asset’s fair value at the date of acquisition are charged to the allowance for credit losses. After foreclosure, management periodically performs valuations such that the real estate is carried at the lower of its new cost basis or fair value, net of estimated costs to sell. Fair value adjustments on other real estate owned are recognized within net loss on real estate owned. The loss represents impairments on real estate owned for fair value adjustments based on the fair value of the real estate. The Company’s property appraisals are primarily based on the sales comparison approach and income approach methodologies, which consider recent sales of comparable properties, including their income generating characteristics, and then make adjustments to reflect the general assumptions that a market participant would make when analyzing the property for purchase. These adjustments may increase or decrease an appraised value and can vary significantly depending on the location, physical characteristics and income producing potential of each property. Additionally, the quality and volume of market information available at the time of the appraisal can vary from period to period and cause significant changes to the nature and magnitude of comparable sale adjustments. Given these variations, comparable sale adjustments are generally not a reliable indicator for how fair value will increase or decrease from period to period. Under certain circumstances, management discounts are applied based on specific characteristics of an individual property. The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at March 31, 2026: March 31, 2026 Fair Value (in thousands) Valuation Technique Unobservable Inputs Range, Weighted Average Collateral dependent loans $ 7,877 Sales comparison approach Income approach Adjustment for differences between comparable sales; Capitalization rate Not meaningful N/A Foreclosed assets (Land) $ 501 Sales comparison approach Adjustment for differences between comparable sales; Not meaningful N/A Foreclosed assets (SFR) $ 220 Sales comparison approach Adjustment for differences between comparable sales; Not meaningful N/A 32 Table of Contents The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at December 31, 2025: December 31, 2025 Fair Value (in thousands) Valuation Technique Unobservable Inputs Range, Weighted Average Collateral dependent loans $ 7,545 Sales comparison approach Income approach Adjustment for differences between comparable sales; Capitalization rate Not meaningful N/A Foreclosed assets (Farmland) $ 2,928 Sales comparison approach Adjustment for differences between comparable sales Not meaningful N/A Foreclosed assets (SFR) $ 634 Sales comparison approach Adjustment for differences between comparable sales Not meaningful N/A Fair values for financial instruments are management’s estimates of the values at which the instruments could be exchanged in a transaction between willing parties. The Company uses the exit price notion when measuring the fair value of financial instruments. These estimates are subjective and may vary significantly from amounts that would be realized in actual transactions. In addition, other significant assets are not considered financial assets including, any mortgage banking operations, deferred tax assets, and premises and equipment. Further, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on the fair value estimates and have not been considered in any of these estimates. March 31, 2026 December 31, 2025 (in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial assets: Level 1 inputs: Cash and due from banks $ 102,232 $ 102,232 $ 92,914 $ 92,914 Cash at Federal Reserve and other banks 199,073 199,073 64,100 64,100 Level 2 inputs: Securities held to maturity 85,740 81,963 90,544 86,987 Level 3 inputs: Loans, net 6,940,259 6,788,961 6,985,325 6,803,008 Financial liabilities: Level 2 inputs: Demand, money market, and savings deposits 7,256,738 7,256,738 7,153,859 7,153,859 Time deposits 1,146,850 1,146,506 1,110,042 1,109,820 Other borrowings 11,455 11,455 11,713 11,713 Level 3 inputs: Junior subordinated debt 41,238 40,582 41,238 40,673 Note 16 - Regulatory Matters The Company is subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios (set forth in the table below) of total, Tier 1, and common equity Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. The following tables present actual and required capital ratios as of March 31, 2026 and December 31, 2025 for the Company and the Bank under applicable Basel III Capital Rules. The minimum capital amounts presented include the minimum required capital levels as of March 31, 2026 and December 31, 2025 based on the then phased-in provisions of the Basel III Capital Rules. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. 33 Table of Contents Actual Required for Capital Adequacy Purposes Required to be Considered Well Capitalized As of March 31, 2026: Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Total Capital (to Risk Weighted Assets): Consolidated $ 1,258,523 15.07 % $ 877,153 10.50 % N/A N/A Tri Counties Bank $ 1,253,447 15.01 % $ 877,007 10.50 % $ 835,244 10.00 % Tier 1 Capital (to Risk Weighted Assets): Consolidated $ 1,153,694 13.81 % $ 710,076 8.50 % N/A N/A Tri Counties Bank $ 1,148,651 13.75 % $ 709,958 8.50 % $ 668,195 8.00 % Common equity Tier 1 Capital (to Risk Weighted Assets): Consolidated $ 1,113,694 13.33 % $ 584,769 7.00 % N/A N/A Tri Counties Bank $ 1,148,651 13.75 % $ 584,671 7.00 % $ 542,909 6.50 % Tier 1 Capital (to Average Assets): Consolidated $ 1,153,694 11.89 % $ 388,055 4.00 % N/A N/A Tri Counties Bank $ 1,148,651 11.85 % $ 387,847 4.00 % $ 484,809 5.00 % Actual Required for Capital Adequacy Purposes Required to be Considered Well Capitalized As of December 31, 2025: Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Total Capital (to Risk Weighted Assets): Consolidated $ 1,256,506 15.05 % $ 876,852 10.50 % N/A N/A Tri Counties Bank $ 1,250,620 14.98 % $ 876,708 10.50 % $ 834,960 10.00 % Tier 1 Capital (to Risk Weighted Assets): Consolidated $ 1,151,744 13.79 % $ 709,832 8.50 % N/A N/A Tri Counties Bank $ 1,145,890 13.72 % $ 709,716 8.50 % $ 667,968 8.00 % Common equity Tier 1 Capital (to Risk Weighted Assets): Consolidated $ 1,111,744 13.31 % $ 584,568 7.00 % N/A N/A Tri Counties Bank $ 1,145,890 13.72 % $ 584,472 7.00 % $ 542,724 6.50 % Tier 1 Capital (to Average Assets): Consolidated $ 1,151,744 11.84 % $ 389,131 4.00 % N/A N/A Tri Counties Bank $ 1,145,890 11.78 % $ 388,982 4.00 % $ 486,227 5.00 % As of March 31, 2026 and December 31, 2025, capital levels at the Company and the Bank exceed all capital adequacy requirements under the Basel III Capital Rules. Also, at March 31, 2026 and December 31, 2025, the Bank’s capital levels exceeded the minimum amounts necessary to be considered well capitalized under the current regulatory framework for prompt corrective action. The Basel III Capital Rules require all banking organizations to maintain a capital conservation buffer above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases and discretionary bonus payments to executive officers. The capital conservation buffer is exclusively composed of common equity tier 1 capital, and it applies to each of the risk-based capital ratios but not the leverage ratio. At March 31, 2026, the Company and the Bank are in compliance with the capital conservation buffer requirement. 34 Table of Contents Note 17 – Segment Information The Company's reportable segment is determined by the Chief Executive Officer, who is designated as the CODM, based upon information provided about the Company's products and services offered, primary banking operations. Segment performance is evaluated using consolidated net income. Information reported internally for performance assessment by the CODM follows, inclusive of reconciliations of the banking segment totals to the financial statements. Three months ended March 31, (in thousands) 2026 2025 Interest income $ 117,827 $ 114,077 Reconciliation of revenue: Other revenues 17,032 16,073 Total consolidated revenues 134,859 130,150 Less: Interest expense 26,601 31,535 Segment net interest income and noninterest income 108,258 98,615 Less: Provision for credit losses 3,325 3,728 Salaries and benefits expense 36,145 36,855 Other banking segment items 22,907 22,730 Provision for income taxes 12,196 8,939 Segment net income/consolidated net income $ 33,685 $ 26,363 As of March 31, 2026 2025 Reconciliation of assets: Total assets for reportable segment $ 9,948,211 $ 9,819,599 Other assets — — Total consolidated assets $ 9,948,211 $ 9,819,599 35 Table of Contents