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PRESS RELEASE For Immediate Release Contact : Peter G. Wiese EVP & Chief Financial Officer ( 530 ) 898-0300 TRICO BANCSHARES ANNOUNCES QUARTERLY RESULTS CHICO , CA - ( October 26 , 2021 ) - TriCo Bancshares ( NASDAQ : TCBK ) ( the “ Company ” ) , parent company of Tri Counties Bank , today announced net income of $ 27,422,000 for the quarter ended September 30 , 2021 , compared to $ 28,362,000 during the trailing quarter ended June 30 , 2021 and $ 17,606,000 during the quarter ended September 30 , 2020. Diluted earnings per share were $ 0.92 for the third quarter of 2021 , compared to $ 0.95 for the second quarter of 2021 and $ 0.59 for the third quarter of 2020 . Financial Highlights Performance highlights and other developments for the Company as of or for the three and nine months ended September 30 , 2021 included the following : • • • For the three and nine months ended September 30 , 2021 , the Company's return on average assets was 1.30 % and 1.48 % , respectively , and the return on average equity was 11.02 % and 12.42 % , respectively . Organic loan growth , excluding PPP , totaled $ 30.7 million ( 2.6 % annualized ) for the current quarter and $ 335.7 million ( 7.6 % ) for the trailing twelve - month period . For the current quarter , net interest margin was 3.50 % on a tax equivalent basis as compared to 3.72 % in the quarter ended September 30 , 2020 , and a decrease of 8 basis points from 3.58 % in the trailing quarter . The efficiency ratio was 52.87 % for the nine months ended September 30 , 2021 , as compared to 59.59 % for the same period of the prior year . As of September 30 , 2021 , the Company reported total loans , total assets and total deposits of $ 4.89 billion , $ 8.46 billion and $ 7.24 billion , respectively . As a direct result of significant deposit growth in the last year , the loan to deposit ratio was 67.54 % as of September 30 , 2021 , as compared to 73.21 % at December 31 , 2020 and 76.12 % at September 30 , 2020 . The average rate of interest paid on deposits , including non - interest - bearing deposits , remained at 0.05 % for the third quarter of 2021 as compared with 0.05 % for the trailing quarter , and decreased by 4 basis points from the average rate paid of 0.09 % during the same quarter of the prior year . The balance of PPP loans outstanding at September 30 , 2021 totaled $ 157.5 million and the balance of SBA fees remaining to be accreted totaled $ 6.0 million . Approximately 98 % of all round one and 25 % of all round two PPP loans have been forgiven and repaid by the SBA . Noninterest income related to service charges and fees was $ 11.3 million and $ 32.7 million for the three and nine month periods ended September 30 , 2021 , an increase of 7.6 % and 17.7 % when compared to the same periods in 2020 . Gains generated from the origination and sale of mortgage loans were $ 1,814,000 in the third quarter of 2021 as compared with $ 2,847,000 and $ 3,035,000 during the trailing quarter and same quarter of the prior year . The reversal of provision for credit losses for loans and debt securities was $ 1.4 million during the quarter ended September 30 , 2021 , as compared to a reversal of provision expense of $ 0.3 million during the trailing quarter ended June 30 , 2021 , and a provision expense totaling $ 7.6 million for the three month period ended September 30 , 2020 . The allowance for credit losses to total loans was 1.72 % as of September 30 , 2021 , compared to 1.93 % as of December 31 , 2020 , and 1.81 % as of September 30 , 2020. Non - performing assets to total assets were 0.37 % at September 30 , 2021 , as compared to 0.43 % as of June 30 , 2021 , and 0.34 % at September 30 , 2020 . " Our ability to grow and shift the mix of our earning assets continues to benefit increases in net interest income . While we maintain a positive outlook on the impacts that possible rate increases and Fed balance sheet tapering will have on our asset sensitive structure , our production teams continue to drive increases in the level of organic loan originations and our operational team members remain vigilant in their efforts to create efficiencies , " commented Peter Wiese , EVP and Chief Financial Officer . Rick Smith , President and Chief Executive Officer added : " We are very pleased with the open and transparent lines of communication that have already formed between our legacy employees and the employees of Valley Republic Bank . As we seek to complete the formal close of the the coming months , our excitement and confidence about the benefits this union will provide to our collective communities , customers , and shareholders continues to grow . " merger Financial results reported in this document are preliminary . Final financial results and other disclosures will be reported in our Quarterly Report on Form 10 - Q for the period ended September 30 , 2021 , and may differ materially from the results and disclosures in this document due to , among other things , the completion of final review procedures , the occurrence of subsequent events , or the discovery of additional information . 1 in