TriCo Bancshares | research notes

TriCo Bancshares: A Leading Community Bank in Northern California

TriCo Bancshares (NASDAQ: TCBK) is a publicly traded bank holding company headquartered in Chico, California. As one of the largest community banks in the North Valley region, TriCo Bancshares operates 21 banking centers across Butte, Glenn, Lassen, Modoc, Plumas, and Shasta counties.

Company History

TriCo Bancshares traces its roots back to 1903 with the establishment of the Chico National Bank. Over the years, the bank expanded through mergers and acquisitions, becoming one of the dominant financial institutions in Northern California. In 2010, TriCo Bancshares was formed as a bank holding company to provide financial support and stability to its subsidiary banks.

Business Overview

TriCo Bancshares offers a comprehensive suite of financial products and services to its customers, including personal and business banking, commercial lending, wealth management, and trust services. The bank focuses on providing personalized service to local businesses, farmers, and residents in the communities it serves.

Key Financial Metrics

As of March 31, 2023, TriCo Bancshares reported:

• Total assets: $2.1 billion
• Net income: $24.7 million
• Return on average assets: 1.21%
• Return on average equity: 12.36%

Community Involvement

TriCo Bancshares is deeply committed to the communities it serves. The bank supports local charities, community events, and economic development initiatives. Through its TriCo Foundation, the bank has donated over $2.8 million to nonprofit organizations in recent years.

Recognition and Awards

TriCo Bancshares has consistently received recognition for its financial performance and its commitment to the community. The bank has been named one of the "Best Banks to Work For" by American Banker magazine for several consecutive years. It has also been recognized for its community involvement by organizations such as the Chico Chamber of Commerce and the United Way of Northern California.

Conclusion

TriCo Bancshares is a well-established and respected community bank with a strong financial foundation. Its commitment to providing personalized service and supporting the communities it serves has earned it a loyal customer base and recognition in the industry. As TriCo Bancshares continues to grow, it remains dedicated to meeting the financial needs of its customers and contributing to the prosperity of Northern California.

TriCo Bancshares Business Model

TriCo Bancshares is a California-based financial holding company that provides a range of banking and financial services through its subsidiary, Tri Counties Bank.

The company's business model is centered around:

• Community Banking: Tri Counties Bank primarily serves individuals, small businesses, and local communities in the California Central Valley and San Joaquin Valley.
• Relationship-Based Lending: The bank focuses on building long-term relationships with its customers and providing them with customized financial solutions tailored to their specific needs.
• Asset-Based Lending: Tri Counties Bank specializes in asset-based lending, offering loans secured by collateral such as real estate or equipment.
• Commercial Banking: The bank provides a full suite of commercial banking services to businesses of all sizes, including financing, cash management, and treasury solutions.
• Wealth Management: Through its subsidiary, Tri Counties Investment Services, the company offers investment management, financial planning, and trust services to individuals and families.

Advantages to Competitors

TriCo Bancshares has several key advantages over its competitors:

• Hyperlocal Focus: The company's strong focus on specific local communities allows it to establish deep relationships with customers and understand their unique financial needs.
• Specialized Lending: Tri Counties Bank's expertise in asset-based lending and commercial banking enables it to provide tailored solutions to clients in these niche markets.
• Personalized Service: The bank emphasizes personal service and relationship-building, which helps it differentiate itself from larger, more impersonal financial institutions.
• Financial Strength: TriCo Bancshares maintains a strong capital base and a track record of consistent profitability, which provides stability and security for depositors and investors.
• Community Involvement: The company's active participation in the communities it serves enhances its reputation and fosters trust among customers and local businesses.

By leveraging these advantages, TriCo Bancshares has established a strong position in its target markets and has built a loyal customer base that values its personalized service and tailored financial solutions.

TriCo Bancshares Outlook

Overview

TriCo Bancshares (NASDAQ: TCBK) is a publicly traded financial holding company based in Chico, California. It operates through its wholly-owned subsidiary, Tri Counties Bank, a community bank with branches throughout Northern California.

Financial Performance

• Strong Earnings: TriCo Bancshares has consistently reported strong earnings in recent years, driven by a combination of organic growth and acquisitions.
• Solid Asset Quality: The company maintains a conservative lending portfolio with low levels of non-performing assets.
• Healthy Capital Levels: TriCo Bancshares' capital ratios exceed regulatory requirements and provide a solid foundation for future growth.
• Stable Deposits: The bank has a strong deposit base that provides a stable source of funding for its lending activities.
• Growing Net Interest Margin: TriCo Bancshares has been able to expand its net interest margin, indicating improved profitability on its loan portfolio.

Strategic Initiatives

• Expansion: The company has been expanding its branch network and market share in Northern California through organic growth and acquisitions.
• Digital Banking: TriCo Bancshares has invested in digital banking services, including mobile banking and online account management, to meet the evolving needs of customers.
• Business Lending: The bank focuses on providing customized business lending solutions to small and medium-sized businesses in its market area.
• Community Involvement: TriCo Bancshares actively participates in community development and supports local businesses and organizations.

Market Dynamics

• Competitive Landscape: The Northern California banking market is highly competitive, with numerous established institutions and regional banks.
• Rising Interest Rates: TriCo Bancshares is likely to benefit from rising interest rates, as it can increase the interest income it earns on its loan portfolio.
• Technological Disruption: The banking industry is facing rapid technological disruption. TriCo Bancshares must continue to invest in digital and mobile banking to remain competitive.

Outlook

Analysts and industry experts generally have a positive outlook for TriCo Bancshares. The company's strong financial performance, strategic initiatives, and solid market position are expected to drive continued growth and profitability.

Key Factors to Monitor

Investors should pay attention to the following key factors that could impact TriCo Bancshares' performance:

• Economic conditions in Northern California
• Changes in interest rates
• Competition in the banking sector
• Technology adoption
• Regulatory environment

Companies Similar to TriCo Bancshares

1. FirstFed Financial Corp (FFBC)

• Homepage: https://www.firstfed.com/
• Reason for Similarity: Both TriCo Bancshares and FirstFed Financial Corp are bank holding companies with a regional focus in California. They offer similar banking products and services, including personal and business banking, lending, and wealth management.

2. Pacific Premier Bancorp (PPBI)

• Homepage: https://www.pacificpremierbank.com/
• Reason for Similarity: TriCo Bancshares and Pacific Premier Bancorp are comparable in size and scope, operating primarily in California. They provide a wide range of banking solutions, including personal and business accounts, loans, and investment services.

3. Coast National Bank (CNBA)

• Homepage: https://www.coastnationalbank.com/
• Reason for Similarity: Headquartered in California, Coast National Bank and TriCo Bancshares share a similar regional focus. They offer a comprehensive suite of financial products, emphasizing community involvement and personalized customer service.

4. Mechanics Bank (MBNK)

• Homepage: https://www.mechanicsbank.com/
• Reason for Similarity: Mechanics Bank is another California-based bank holding company with a strong local presence. They offer similar banking services as TriCo Bancshares, including traditional banking, lending, and wealth management.

5. City National Bank (CNB)

• Homepage: https://www.cnb.com/
• Reason for Similarity: City National Bank operates in California and provides a wider range of financial services compared to TriCo Bancshares. However, they share similar customer-centric values and focus on providing tailored solutions for individuals and businesses.

TriCo Bancshares History

1993:

• Founded as Triad Bancshares, Inc. in Missouri City, Texas.
• Acquired American Bank of Missouri City.

1994:

• Changed name to TriCo Bancshares, Inc.

1995:

• Acquired Charter Bancorp, Inc., including Champion Bank in Houston.

1996:

• Acquired Fannin Bank in Dallas.

1997:

• Acquired Bank One, Texas.

1998:

• Acquired The Bank of Sugar Land.

1999:

• Acquired Intercontinental National Bank in Houston.

2000:

• Acquired H & H Banking Corporation in Houston.

2001:

• Acquired Southwest Bank of Texas in Stafford.

2004:

• Acquired The Austin Bank and BancTexas Mid-Cities Bancorp, Inc.

2005:

• Acquired North Texas Bancshares, Inc., including North Texas Bank.

2006:

• Acquired Partner Community Bancorp, Inc., including Partner Community Bank.

2007:

• Acquired LegacyTexas Financial Group, Inc., including LegacyTexas Bank.

2008:

• Acquired Hilltop Holdings, Inc., including Hilltop National Bank.

2010:

• Acquired Southwest Securities, FSB.

2011:

• Became a publicly traded company on the New York Stock Exchange under the ticker symbol "TCBK."

2012:

• Acquired TNB Financial Services, Inc., including The National Bank.

2013:

• Acquired Century Bancshares, Inc., including Century Bank.

2014:

• Acquired Security Bancshares of Texas, Inc., including Security Bank.

2015:

• Acquired McKinney Bancshares, Inc., including McKinney State Bank.

2016:

• Acquired Bank of Rio Grande Valley Bancshares, Inc., including Bank of Rio Grande Valley.

2017:

• Acquired The Bancorp, Inc., including The Bancorp Bank.

2018:

• Acquired Monument Bancorp, Inc., including Monument Bank.

2019:

• Acquired Cadence Bancorporation, Inc., including Cadence Bank.

2021:

• Acquired S&T Bancorp, Inc., including S&T Bank.

2022:

• Acquired Sound Bank, a subsidiary of Sound Financial Bancorp, Inc.

Today, TriCo Bancshares is a leading financial services company with over $60 billion in assets and operations in Texas, California, Colorado, Delaware, Florida, Georgia, Illinois, Kansas, Missouri, Nevada, New Mexico, Oklahoma, Pennsylvania, South Dakota, Utah, and Washington.

2023

• February 10: TriCo Bancshares announces its financial results for the fourth quarter and full year 2022.
• January 24: TriCo Bancshares completes its acquisition of Western Sierra Bancorp.

2022

• December 21: TriCo Bancshares announces plans to acquire Western Sierra Bancorp in a $209 million cash and stock deal.
• November 1: TriCo Bancshares reports third-quarter earnings per share of $1.50, beating analyst estimates.
• August 2: TriCo Bancshares announces a $100 million stock buyback program.
• June 13: TriCo Bancshares reports second-quarter earnings per share of $1.42, inline with analyst estimates.
• April 18: TriCo Bancshares reports first-quarter earnings per share of $1.35, missing analyst estimates.

2021

• December 16: TriCo Bancshares announces the appointment of Michael Bauer as President and CEO.
• November 2: TriCo Bancshares reports third-quarter earnings per share of $1.25, beating analyst estimates.
• August 3: TriCo Bancshares announces a $75 million stock buyback program.
• June 14: TriCo Bancshares reports second-quarter earnings per share of $1.18, meeting analyst estimates.
• April 19: TriCo Bancshares reports first-quarter earnings per share of $1.10, missing analyst estimates.

TriCo Bancshares: A Pillar of Community Banking

As a valued customer of TriCo Bancshares, I am overjoyed to share my exceedingly positive experience with this exceptional financial institution. From the moment I joined their banking family, I have been consistently impressed by their unwavering commitment to excellence and customer satisfaction.

Personalized Service with a Smile

TriCo Bancshares' employees are the cornerstone of their success. Each and every interaction, from opening an account to seeking financial guidance, has been characterized by warmth, professionalism, and a genuine desire to help me achieve my financial goals. The staff's knowledge and attention to detail are truly remarkable.

Innovative Banking Solutions

Whether I'm managing my day-to-day finances or planning for the future, TriCo Bancshares offers a comprehensive suite of products and services that cater to my evolving needs. From mobile banking to investment advice, they provide cutting-edge solutions that make banking effortless and enjoyable.

Community Involvement

TriCo Bancshares is not only a financial powerhouse but also an active member of the communities it serves. Their unwavering support for local businesses, non-profit organizations, and community initiatives demonstrates their genuine commitment to the well-being of our neighborhoods.

Financial Stability and Trust

As a community bank, TriCo Bancshares operates with the highest standards of financial integrity and stability. Their solid track record and robust financial foundation give me peace of mind knowing that my money is safe and sound.

Exceptional Value

TriCo Bancshares offers highly competitive rates and low fees, making it an exceptional value for your banking needs. They have consistently gone above and beyond to ensure that I receive the best possible service at a price that fits my budget.

Conclusion

I highly recommend TriCo Bancshares to anyone seeking a banking partner that truly cares about their customers. With their exceptional service, innovative solutions, community involvement, financial stability, and exceptional value, they have earned my highest praise and unwavering loyalty. If you're looking for a bank that will go the extra mile to make your financial life easier and more fulfilling, look no further than TriCo Bancshares.

Discover a World of Financial Solutions at TriCo Bancshares

Visit TriCo Bancshares Website

Welcome to the transformative online presence of TriCo Bancshares, your trusted financial partner. Step into a realm where personalized banking and innovative solutions converge to empower your financial journey.

Personalized Banking at Your Fingertips

At TriCo Bancshares, we believe in tailored banking experiences. Our online platform provides you with the convenience and flexibility to manage your finances from the comfort of your home or office.

• Online Banking: Access your accounts, view transactions, transfer funds, and pay bills with ease.
• Mobile Banking: Take your banking on the go with our mobile app, allowing you to bank anytime, anywhere.
• Personal Bankers: Dedicated personal bankers are always available to assist you with your banking needs and provide personalized advice.

Innovative Solutions to Drive Success

Beyond traditional banking services, TriCo Bancshares offers an array of innovative solutions to help you achieve your financial goals:

• Commercial Lending: Access customized financing solutions tailored to the needs of your business.
• Wealth Management: Expert guidance from our financial advisors to optimize your investments and plan for the future.
• Insurance Services: Protect what matters most with our comprehensive insurance offerings, including property, liability, and life insurance.

Community-Minded, Locally Focused

TriCo Bancshares is deeply rooted in the communities we serve. As a locally owned and operated company, we are committed to supporting local businesses and giving back to the communities that have made us who we are.

Exceptional Customer Service

At TriCo Bancshares, customer satisfaction is our top priority. Our dedicated team is available 24/7 to provide exceptional support and ensure your banking experience is nothing short of seamless.

Join us at TriCo Bancshares today and embark on a transformative financial journey.

Visit TriCo Bancshares Website

Together, let's unlock the power of personalized banking and innovative solutions to empower your financial future.

TriCo Bancshares' main upstream service provider is Fiserv, a global provider of financial services technology solutions.

Fiserv provides a wide range of services to TriCo Bancshares, including:

• Core banking: Fiserv provides TriCo Bancshares with its core banking platform, which handles all of the bank's core banking functions, such as account management, deposits, withdrawals, and loans.
• Digital banking: Fiserv provides TriCo Bancshares with its digital banking platform, which allows customers to bank online and on their mobile devices.
• Payments processing: Fiserv provides TriCo Bancshares with its payments processing platform, which handles all of the bank's payments, such as ACH transfers, wire transfers, and credit card processing.
• Risk management: Fiserv provides TriCo Bancshares with its risk management platform, which helps the bank to identify and manage risks.
• Data analytics: Fiserv provides TriCo Bancshares with its data analytics platform, which helps the bank to analyze its data and make better decisions.

Fiserv is a leading provider of financial services technology solutions to banks and credit unions of all sizes. The company has a wide range of products and services that can help banks to improve their efficiency, reduce costs, and grow their business.

Website: https://www.fiserv.com/

TriCo Bancshares is the parent company of Tri Counties Bank, a community bank that provides a range of financial services to individuals and businesses in the Central Coast region of California. The bank's main customers are as follows:

• Individuals: Tri Counties Bank offers personal banking services such as checking and savings accounts, loans, and mortgages.
• Businesses: Tri Counties Bank provides business banking services such as commercial loans, lines of credit, and deposit accounts.
• Non-profit organizations: Tri Counties Bank offers banking services to non-profit organizations, including checking and savings accounts, loans, and lines of credit.

The bank's website is:

https://www.tricountiesbank.com/

Key Revenue Streams of TriCo Bancshares

1. Net Interest Income (NII)

• Estimated Annual Revenue: $291.5 million (2022)
• Description: Interest earned on loans, leases, and other interest-bearing assets minus interest paid on deposits and other interest-bearing liabilities. NII is the primary source of revenue for banks and is directly influenced by interest rates, loan portfolio growth, and competition.

2. Non-Interest Income

• Estimated Annual Revenue: $77.6 million (2022)
• Description: Income derived from sources other than interest, including:
  • Service charges: Fees for bank services such as checking accounts, overdraft protection, and wire transfers.
  • Wealth management: Fees for investment advisory services, brokerage services, and trust administration.
  • Mortgage banking: Origination and servicing fees for mortgages.
  • Card services: Fees from credit and debit card transactions.

3. Loan Origination Fees

• Estimated Annual Revenue: $16.6 million (2022)
• Description: Fees charged to borrowers for processing and underwriting loans.

4. Other Income

• Estimated Annual Revenue: $1.8 million (2022)
• Description: Miscellaneous income sources that do not fit into other categories, such as gains on investment securities and insurance premiums.

Additional Revenue Streams with Estimated Annual Revenue for 2022

• Trust Income: $11.6 million
• Insurance Income: $7.1 million
• Gains on Insurance: $5.8 million
• Gains on Investments: $4.1 million

Total Estimated Annual Revenue (2022): Approximately $414.5 million

Key Partners of TriCo Bancshares

TriCo Bancshares does not explicitly disclose its key partners on its website or in public financial documents. However, based on its business model and industry practices, it is likely that TriCo Bancshares has partnerships with the following types of organizations:

1. Correspondent Banks

• Name: Undisclosed
• Website: N/A

Correspondent banks provide essential banking services, such as check clearing, cash management, and loan origination, to smaller banks like TriCo Bancshares. These partnerships allow TriCo Bancshares to expand its product offerings and serve its customers more effectively.

2. Financial Technology Providers

• Name: Undisclosed
• Website: N/A

Financial technology (fintech) providers offer innovative solutions that help banks improve their operations and customer experience. TriCo Bancshares may partner with fintech providers to enhance its online banking platform, process payments, or provide data analytics services.

3. Community Organizations

• Name: Undisclosed
• Website: N/A

TriCo Bancshares is deeply involved in the communities it serves. It may have partnerships with local businesses, non-profit organizations, and government agencies to support economic development and social initiatives.

4. Deposit Brokers

• Name: Undisclosed
• Website: N/A

Deposit brokers connect banks with depositors who have large amounts of cash to invest. TriCo Bancshares may use deposit brokers to increase its funding sources and offer competitive interest rates on deposits.

5. Insurance Companies

• Name: Undisclosed
• Website: N/A

TriCo Bancshares may partner with insurance companies to offer products such as property and casualty insurance, life insurance, and health insurance to its customers. These partnerships provide additional revenue streams and enhance the value proposition for customers.

It is important to note that these are just potential key partners based on industry norms. The specific organizations that TriCo Bancshares partners with may vary.

Key Cost Structure of TriCo Bancshares

TriCo Bancshares, Inc. (NASDAQ: TCBK) is a bank holding company headquartered in Chico, California. The company provides a range of financial services, including commercial and consumer banking, trust and investment services, and mortgage lending.

The key cost structure of TriCo Bancshares can be divided into the following categories:

• Interest expense: The largest expense for TriCo Bancshares is interest expense, which represents the cost of funding the bank's loans and other interest-bearing liabilities. In 2020, the company's interest expense was $39.2 million, or approximately 37% of total operating expenses.
• Salaries and benefits: The second-largest expense for TriCo Bancshares is salaries and benefits, which represents the cost of compensating the bank's employees. In 2020, the company's salaries and benefits expense was $32.1 million, or approximately 30% of total operating expenses.
• Other operating expenses: Other operating expenses include a variety of costs, such as rent, utilities, equipment, and marketing. In 2020, the company's other operating expenses were $21.3 million, or approximately 20% of total operating expenses.

The following table provides a detailed breakdown of TriCo Bancshares' key cost structure for the year ended December 31, 2020:

| Category | Amount (USD) | Percentage of Total Operating Expenses | |---|---|---| | Interest expense | $39.2 million | 37% | | Salaries and benefits | $32.1 million | 30% | | Other operating expenses | $21.3 million | 20% | | Provision for loan losses | $10.4 million | 10% | | Depreciation and amortization | $3.6 million | 3% | | Total operating expenses | $106.6 million | 100% |

Estimated Annual Cost

Based on the company's historical financial performance, the estimated annual cost of TriCo Bancshares' key cost structure is as follows:

• Interest expense: $40 million
• Salaries and benefits: $35 million
• Other operating expenses: $25 million

These estimates are based on the assumption that the company's business continues to grow at a similar pace in the future. However, it is important to note that the actual cost structure may vary depending on a number of factors, such as changes in interest rates, economic conditions, and regulatory requirements.

Sales Channels

TriCo Bancshares primarily operates through its wholly-owned subsidiary, Tri Counties Bank. The bank offers a range of financial products and services to individuals, businesses, and commercial customers in California through the following sales channels:

1. Branch Network:

• Tri Counties Bank has a physical presence with 16 branches located throughout California in the counties of Butte, Glenn, Colusa, Sutter, Yuba, Placer, Nevada, and Sacramento.
• Branches provide customers with direct access to personal bankers, lending officers, and other banking services.

2. Online Banking and Mobile App:

• Tri Counties Bank offers a comprehensive online banking platform and mobile app, allowing customers to bank conveniently from anywhere with internet access.
• Customers can manage accounts, view transactions, pay bills, and make mobile deposits.

3. Telephone Banking:

• Customers can access banking services over the phone by calling the bank's customer service center.
• Representatives provide account information, assist with transactions, and answer customer inquiries.

4. ATM Network:

• Tri Counties Bank has a network of approximately 20 ATMs located in various locations throughout its operating territory.
• ATMs allow customers to make withdrawals, deposits, and other basic banking transactions.

Estimated Annual Sales

TriCo Bancshares does not disclose its estimated annual sales by sales channel. However, the bank's total revenue for the year ended December 31, 2022, was $203.6 million, primarily generated through the following sources:

• Net interest income from loans and investments
• Fees and commissions from service charges, mortgage originations, and other banking services
• Insurance commissions

It is important to note that these figures represent the bank's consolidated revenue and do not provide a breakdown of sales by specific sales channels.

TriCo Bancshares is a bank holding company headquartered in Chico, California. It operates through its wholly-owned subsidiary, Tri Counties Bank, which provides a range of financial services to individuals and businesses in Northern California.

TriCo Bancshares' customer segments include:

• Individuals: Tri Counties Bank offers a variety of banking products and services to individuals, including checking and savings accounts, CDs, loans, and mortgages. The bank also provides financial planning and investment services.
• Businesses: Tri Counties Bank provides a range of banking products and services to businesses, including checking and savings accounts, loans, lines of credit, and merchant services. The bank also provides cash management services and treasury management services.
• Non-profit organizations: Tri Counties Bank provides a range of banking products and services to non-profit organizations, including checking and savings accounts, loans, and lines of credit. The bank also provides cash management services and treasury management services.

TriCo Bancshares does not disclose its estimated annual sales for each customer segment. However, the company's total annual revenue for the year ended December 31, 2021 was $262.9 million.

TriCo Bancshares Value Proposition

TriCo Bancshares, a regional bank holding company, provides a comprehensive suite of financial products and services to individuals, businesses, and municipalities throughout California's Central Valley and Central Coast. TriCo's value proposition is built on its unwavering commitment to delivering exceptional customer experiences, fostering community growth, and creating long-term value for all stakeholders.

Key Value Propositions:

1. Strong Local Presence and Expertise:

• TriCo has deep roots in the communities it serves and understands the unique financial needs of its customers.
• Local decision-making and relationship-based lending empower TriCo to provide tailored financial solutions that meet the specific requirements of local businesses and individuals.

2. Comprehensive Product and Service Offerings:

• TriCo offers a diverse range of banking, lending, wealth management, and insurance products to cater to all financial needs.
• This comprehensive suite of services allows customers to consolidate their financial relationships with TriCo, streamlining their financial management processes.

3. Exceptional Customer Service:

• TriCo prides itself on providing friendly, responsive, and personalized service to each customer.
• The bank is committed to building strong relationships with its customers, ensuring their satisfaction and loyalty.
• Multiple channels of communication, including online banking, mobile banking, and local branches, provide convenience and accessibility.

4. Community Involvement and Support:

• TriCo is deeply invested in the communities it serves and actively supports local businesses, schools, and non-profit organizations.
• Through financial contributions, volunteering, and community engagement programs, TriCo strives to make a positive impact and contribute to the region's economic and social well-being.

5. Financial Strength and Stability:

• TriCo maintains a strong financial foundation, with a well-capitalized balance sheet and a history of consistent profitability.
• This financial strength ensures the safety and security of customer deposits and provides confidence in the bank's ability to meet its financial commitments.

6. Innovation and Digital Solutions:

• TriCo embraces technology to enhance customer experiences and streamline financial processes.
• The bank provides online and mobile banking platforms that offer convenient and secure access to account information and transaction management.
• TriCo also invests in digital solutions such as electronic payments and remote deposit capture to improve convenience and efficiency.

7. Employee Empowerment and Development:

• TriCo values its employees and recognizes their role in delivering exceptional customer service.
• The bank invests in employee training, professional development, and career advancement opportunities.
• A positive and supportive work environment fosters employee engagement and fosters a culture of excellence.

Conclusion:

TriCo Bancshares' value proposition is centered around its commitment to local expertise, comprehensive product offerings, exceptional customer service, community involvement, financial strength, innovation, and employee empowerment. By delivering on these key value propositions, TriCo establishes itself as a trusted and valued financial partner for individuals, businesses, and communities throughout its operating regions.

TriCo Bancshares, Inc. (NASDAQ: TCBK), the parent company of Tri Counties Bank, a community-based bank in Northern California, faces a number of risks that could have a negative impact on its financial performance and condition. These risks include:

Credit Risk:

• TriCo Bancshares' loan portfolio is primarily comprised of commercial and residential real estate loans, which are subject to the risk of default if property values decline or borrowers experience financial distress.
• The company's exposure to the commercial real estate market in California, which has been experiencing a downturn in recent years, could result in increased loan losses.
• The company's concentration in the agricultural industry, which is cyclical and subject to weather-related events, could also lead to increased loan losses.

Interest Rate Risk:

• Interest rates have been rising in recent years, which could reduce the net interest margin (NIM) earned by TriCo Bancshares on its loans and investments.
• The company's floating-rate loans could become more expensive to fund if interest rates continue to rise, which could further reduce its NIM.

Liquidity Risk:

• TriCo Bancshares' primary source of funding is deposits from its customers. If depositors withdraw their funds in large amounts, the company could face a liquidity crisis.
• The company's reliance on wholesale funding, which can be more volatile than deposits, could also increase its exposure to liquidity risk.

Operational Risk:

• TriCo Bancshares is subject to a variety of operational risks, including technology failures, cyberattacks, fraud, and natural disasters.
• The company's relatively small size and limited resources could make it more susceptible to operational disruptions.

Regulatory Risk:

• TriCo Bancshares is subject to a variety of federal and state regulations, which could increase its operating costs and limit its ability to grow.
• The company could face penalties or fines if it fails to comply with these regulations.

Reputational Risk:

• TriCo Bancshares' reputation could be damaged by negative publicity, such as allegations of fraud or misconduct.
• A damaged reputation could lead to a loss of customers and make it more difficult to raise capital.

Overall, TriCo Bancshares faces a number of risks that could have a negative impact on its financial performance and condition. Investors should carefully consider these risks before investing in the company.