About TriCo Bancshares

TriCo Bancshares operates as the bank holding company for Tri Counties Bank that engages in the general commercial and retail banking business in California counties. The company has five capital trusts, which are all wholly-owned trust subsidiaries formed for the purpose of issuing trust preferred securities (Trust Preferred Securities) and lending the proceeds to it. The company offers an extensive and competitive breadth of consumer, small business and commercial banking services through its network of stand-alone and in-store branches in communities throughout California. The company focuses on relationships and personal contact, emphasizing its Service with Solutions. In addition to its California community bank network, the company provides advanced online and mobile banking. The company provides a breadth of personal, small business and commercial financial services, including accepting demand, savings and time deposits and making small business, commercial, real estate, and consumer loans, as well as a range of Treasury Management Services and other customary banking services, including safe deposit boxes at some branches. Brokerage services are provided at the company’s offices by Tri Counties Wealth Management Advisors through its arrangement with Raymond James Financial Services, Inc., an independent financial services provider and broker-dealer. The company offers a variety of banking and financial services to both personal, small business and commercial customers. In many instances the owners or stakeholders of the business and commercial customers are also personal customers. The industries that the company serves are diverse in both number and type and include, but are not limited to, manufacturing, real estate development, retail, wholesale, transportation, agriculture, commerce, and professional services. The majority of the company’s loans are direct loans made to individuals and businesses in California where its branches or business lending centers are located. The company takes real estate, listed and unlisted securities, savings and time deposits, automobiles, machinery, equipment, inventory, accounts receivable and notes receivable secured by property as collateral for loans. Most of the company’s deposits are attracted from individuals and business-related sources. Loans The company concentrates its lending activities in four principal areas: real estate mortgage loans (residential and commercial loans), consumer loans, commercial loans (including agricultural loans), and real estate construction loans. The majority of the bank’s loans are direct loans made to individuals, farmers and local businesses. The bank makes loans to borrowers whose applications include a sound purpose, a viable repayment source and a plan of repayment established at inception and generally backed by a secondary source of repayment. Investment Securities As of December 31, 2022, the company’s investment portfolio included obligations of U.S. government agencies; obligations of states and political subdivisions; corporate bonds; asset backed securities; and non-agency collateralized mortgage obligations. Regulation and Supervision As a bank holding company, the company is subject to the supervision of the Board of Governors of the Federal Reserve System (the ‘FRB’) under the Bank Holding Company Act of 1956, as amended. The bank is subject to the supervision of the California Department of Financial Protection & Innovation (the ‘DFPI’) and the Federal Deposit Insurance Corporation (FDIC). The company is also under the jurisdiction of the U.S. Securities and Exchange Commission (SEC) and is subject to the disclosure and regulatory requirements of the Securities Act of 1933 and the Securities Exchange Act of 1934, each administered by the SEC. The company’s common stock is listed on the Nasdaq Global Select Market (Nasdaq) under the trading symbol TCBK and the company is, therefore, subject to the rules of Nasdaq for listed companies. The bank is subject to regulation, supervision and periodic examination by the FDIC, which is the bank’s primary federal regulator and the State of California Department of Financial Protection & Innovation (DFPI). The company is registered as a bank holding company under the Bank Holding Company Act of 1956, as amended (BHC Act). In general, the BHC Act limits the business of bank holding companies to banking, managing or controlling banks and other activities that the Federal Reserve Bank of San Francisco (FRB) has determined to be so closely related to banking as to be a proper incident thereto. As a bank holding company, the company is required to file reports with the FRB and the FRB periodically examines the company. The company is required to obtain prior FRB approval before acquiring more than 5% of the voting shares, or substantially all of the assets, of a bank holding company, bank or savings association. The bank is subject to many federal consumer protection statues and regulations, some of which are discussed below. The Equal Credit Opportunity Act generally prohibits discrimination in any credit transaction, whether for consumer or business purposes, on the basis of race, color, religion, national origin, sex, marital status, age (except in limited circumstances), receipt of income from public assistance programs, or good faith exercise of any rights under the Consumer Credit Protection Act. The Truth-in-Lending Act is designed to ensure that credit terms are disclosed in a meaningful way so that consumers may compare credit terms more readily and knowledgeably. The Fair Housing Act regulates many practices, including making it unlawful for any lender to discriminate in its housing-related lending activities against any person because of race, color, religion, national origin, sex, handicap or familial status. The Home Mortgage Disclosure Act, which includes a fair lending aspect, requires the collection and disclosure of data about applicant and borrower characteristics as a way of identifying possible discriminatory lending patterns and enforcing anti-discrimination statutes. The Real Estate Settlement Procedures Act requires lenders to provide borrowers with disclosures regarding the nature and cost of real estate settlements and prohibits certain abusive practices, such as kickbacks, and places limitations on the amount of escrow accounts. In addition, the CFPB has taken a number of actions that may affect the bank’s operations and compliance costs, including the following: The issuance of final rules for residential mortgage lending, which became effective January 10, 2013, including definitions for qualified mortgages and detailed standards by which lenders must satisfy themselves of the borrower’s ability to repay the loan and revised forms of disclosure under the Truth in Lending Act and the Real Estate Settlement Procedures Act. Actions taken to regulate and supervise credit bureaus and debt collections. Positions taken by the CFPB on fair lending, including applying the disparate impact theory in auto financing, which could make it harder for lenders, such as the bank, to charge different rates or apply different terms to loans to different customers. The company is subject to a number of U.S. federal, state, local and foreign laws and regulations relating to consumer privacy and data protection. Under privacy protection provisions of the Gramm-Leach-Bliley Act of 1999 (GLBA) and its implementing regulations and guidance, it is limited in its ability to disclose certain non-public information about consumers to non-affiliated third parties. Financial institutions, such as the bank, are required by statute and regulation to notify consumers of their privacy policies and practices and, in some circumstances, allow consumers to prevent disclosure of certain personal information to a non-affiliated third party. In addition, such financial institutions must appropriately safeguard their customers’ nonpublic, personal information. Deposit accounts in the bank are insured by the FDIC, generally up to a maximum of $250,000 per separately insured depositor. The bank pays deposit insurance assessments as determined by the FDIC. The assessment rate for an institution with less than $10.0 billion in assets, such as the bank, is based on its risk category, with certain adjustments for any unsecured debt or brokered deposits held by the bank. In addition to complying with the Bank Secrecy Act of 1970 (BSA), the bank is subject to the USA Patriot Act of 2001 (Patriot Act). The banks are also subject to certain restrictions imposed by the Federal Reserve Act on extensions of credit to executive officers, directors, principal shareholders (including the company) or any related interest of such persons. History TriCo Bancshares was incorporated in California in 1975. The company was incorporated in 1981.