TriCo Bancshares : Announces Quarterly Results

	Exhibit 99.1
PRESS RELEASE	Contact: Richard P. Smith
For Immediate Release	President & CEO [phone]
	TRICO BANCSHARES ANNOUNCES QUARTERLY RESULTS

CHICO, CA - (October 26, 2020) - TriCo Bancshares (NASDAQ: TCBK) (the "Company"), parent company of Tri Counties Bank, today announced net income of $17,606,000 for the quarter ended September 30, 2020, compared to $7,430,000 during the trailing quarter ended June 30, 2020 and $23,395,000 during the quarter ended September 30, 2019. Diluted earnings per share were $0.59 for the third quarter of 2020, compared to $0.25 for the second quarter of 2020 and $0.76 for the third quarter of 2019.

Financial Highlights

Performance highlights and other developments for the Company as of or for the three and nine months ended September 30, 2020 included the following:

• For the three and nine months ended September 30, 2020, the Company's return on average assets was 0.95% and 0.79%, respectively, and the return on average equity was 7.79% and 6.13%, respectively.
• As of September 30, 2020, the Company reported total loans, total assets and total deposits of $4.83 billion, $7.45 billion and $6.34 billion, respectively.
• The loan to deposit ratio was 76.12% as of September 30, 2020, as compared to 76.84% at June 30, 2020 and 78.98% at September 30, 2019.
• For the current quarter, net interest margin was 3.72% on a tax equivalent basis as compared to 4.44% in the quarter ended September 30, 2019, and a decrease of 38 basis points from the 4.10% in the trailing quarter.
• Non-interestbearing deposits as a percentage of total deposits were 39.71% at September 30, 2020, as compared to 39.81% at June 30, 2020 and 33.56% at September 30, 2019.
• The average rate of interest paid on deposits, including non-interest-bearing deposits, decreased to 0.09% for the third quarter of 2020 as compared with 0.12% for the trailing quarter, and also decreased by 14 basis points from the average rate paid of 0.23% during the same quarter of the prior year.
• Non-performingassets to total assets were 0.34% at September 30, 2020, as compared to 0.31% as of June 30, 2020, and 0.31% at September 30, 2019.
• Credit provision expense for loans and debt securities was $7.6 million during the quarter ended September 30, 2020, as compared to provision expense of $22.2 million during the trailing quarter ended June 30, 2020, and a reversal of provision totaling ($0.3) million for the three month period ended September 30, 2019.
• Gain on sale of loans for the three and nine months ended September 30, 2020 totaled $3.0 million and $5.7 million, as compared to $1.2 million and $2.2 million for the equivalent periods ended September 30, 2019, respectively.
• The efficiency ratio was 59.44% for the third quarter of 2020, as compared to 59.69% in the trailing quarter and 58.82% in the same quarter of the 2019 year.

President and CEO, Rick Smith commented, "While we continue to operate in a very difficult interest rate environment, there were several positive areas of performance during the quarter. In addition to having non-PPP loan growth, we continue to experience strong deposit growth while at the same time making reductions to our cost of funds. Most importantly, credit quality remained stable if not improved over the prior quarter as illustrated by deferred loans outstanding decreasing from $341 million to $131 million and the Bank's credit loss reserves now stand at 1.81% of total loans. Our non-interest income, driven by continued mortgage banking gains and card usage, increased significantly from the prior quarter as economic activity improved in California and in most of our service areas customers continued to find ways to keep their businesses open while COVID-19 mandates remain in place. Operating expense management remains a priority for the Company and significant progress was made to the benefit of our forward-looking expense management strategy, including reductions in staffing and preparing for certain branch closures."

Smith added, "In addition to normal banking efforts, we continue to operate effectively under the current COVID-19 environment. Our branches are open, and we have made operational enhancements to allow employees the ability to continue to work effectively from either the office or from home. We also experienced numerous wildfires during the quarter burning millions of acres of land around us. Fortunately, our bank and our customers have experienced minimal damage from those fires and currently the fires are controlled."

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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, 2020, 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

Summary Results

For the three and nine months ended September 30, 2020 the Company's return on average assets was 0.95% and 0.79%, respectively, and the return on average equity was 7.79% and 6.13%, respectively. For the three and nine months ended September 30, 2019, the Company's return on average assets was 1.44% and 1.44%, respectively, and the return on average equity was 10.42% and 10.67%, respectively.

The following is a summary of the components of the Company's operating results and performance ratios for the periods indicated:

			Three months ended
		September 30,			June 30,
(dollars and shares in thousands)			2020				2020					$ Change		% Change
Net interest income	$	63,454		$	64,659			$	(1,205)			(1.9)%
Provision for loan losses			(7,649)				(22,244)					14,595			(65.6)%
Noninterest income			15,137				11,657					3,480			29.9 %
Noninterest expense			(46,714)				(45,550)					(1,164)			2.6 %
Provision for income taxes			(6,622)				(1,092)					(5,530)			506.4 %
Net income	$	17,606		$	7,430			$	10,176			137.0 %
Diluted earnings per share	$	0.59		$	0.25			$	0.34			136.0 %
Dividends per share	$	0.22		$	0.22			$	-		- %
Average common shares			29,764				29,754					10			0.0 %
Average diluted common shares			29,844				29,883					(39)			(0.1)%
Return on average total assets			0.95 %				0.43 %
Return on average equity			7.79 %				3.39 %
Efficiency ratio			59.44 %				59.69 %
			Three months ended
			September 30,
(dollars and shares in thousands)			2020				2019					$ Change		% Change
Net interest income	$	63,454		$	64,688			$	(1,234)			(1.9)%
(Provision for) reversal of loan losses			(7,649)				329					(7,978)			(2,424.9)%
Noninterest income			15,137				14,108					1,029			7.3 %
Noninterest expense			(46,714)				(46,344)					(370)			0.8 %
Provision for income taxes			(6,622)				(9,386)					2,764			(29.4)%
Net income	$	17,606		$	23,395			$	(5,789)			(24.7)%
Diluted earnings per share	$	0.59		$	0.76			$	(0.17)			(22.4)%
Dividends per share	$	0.22		$	0.22			$	-		- %
Average common shares			29,764				30,509					(745)			(2.4)%
Average diluted common shares			29,844				30,629					(785)			(2.6)%
Return on average total assets			0.95 %				1.44 %
Return on average equity			7.79 %				10.42 %
Efficiency ratio			59.44 %				58.82 %
			Nine months ended
			September 30,
(dollars and shares in thousands)			2020				2019					$ Change		% Change
Net interest income		$	191,305			$	192,873				$	(1,568)			(0.8)%
(Provision for) reversal of loan losses			(37,963)				1,392					(39,355)		(2,827.2)%
Noninterest income			38,615				39,334					(719)		(1.8)%
Noninterest expense			(137,014)				(138,493)					1,479			(1.1)%
Provision for income taxes			(13,786)				(25,924)					12,138			(46.8)%
Net income		$	41,157			$	69,182				$	(28,025)			(40.5)%
Diluted earnings per share		$	1.37			$	2.25				$	(0.88)			(39.2)%
Dividends per share	$	0.66		$	0.60			$	0.06			10.0 %
Average common shares			29,971				30,464					(493)		(1.6)%
Average diluted common shares			30,083				30,643					(560)		(1.8)%
Return on average total assets			0.79 %			1.44 %
Return on average equity			6.13 %			10.67 %
Efficiency ratio			59.59 %			59.64 %

2

SBA Paycheck Protection Program

In March 2020, the SBA Paycheck Protection Program ("PPP") was created to help small businesses keep workers employed during the COVID-19 crisis. As a Small Business Administration (SBA) Preferred Lender, the Company was able to provide PPP loans to small business customers. As of the quarter ended September 30, 2020, the total balance outstanding of PPP loans was $437,793,000 (approximately 2,900 loans) as compared to total PPP originations of $438,510,000. Included in the balance of outstanding PPP loans as of September 30, 2020 are approximately 1,420 loans with outstanding balances of less than $50,000 each and with a total balance outstanding of approximately $32,296,000. In connection with the origination of these loans, the Company earned approximately $15,735,000 in loan fees, offset by deferred loan costs of approximately $763,000, the net of which will be recognized over the earlier of loan maturity, repayment or receipt of forgiveness confirmation. As of September 30, 2020 there was approximately $11,846,000 in net deferred fee income expected to be recognized. During the three and nine months ended September 30, 2020, the Company recognized $2,603,000 and $4,959,000, respectively, in interest and fees on PPP loans.

COVID Deferrals

Following the passage of the CARES Act legislation, the "Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus" was issued by federal bank regulators, which offers temporary relief from troubled debt restructuring accounting for loan payment deferrals for certain customers whose businesses are experiencing economic hardship due to Coronavirus. The Company is closely monitoring the effects of the pandemic on our loan and deposit customers. Our management team continues to be focused on assessing the risks in our loan portfolio and working with our customers to mitigate where possible, the risk of potential losses. The Company implemented loan programs to allow certain consumers and businesses impacted by the pandemic to defer loan principal and interest payments.

The following is a summary of COVID related loan customer modifications with outstanding balances as of September 30, 2020:

						Modification Type		Deferral Term
	Modified Loan		% of Total	Interest Only		Principal and
(dollars in thousands)		Balances		Category of		Interest		90 Days		180 Days
	Outstanding		Loans		Deferral		Deferral
Commercial real estate:	$	80,314	5.0 %		96.0 %	4.0 %
CRE non-owner occupied			- %	100.0 %
CRE owner occupied		12,959	2.2		64.3	35.7	10.2	89.8
Multifamily		8,996	1.5		75.7	24.3	24.3	75.7
Farmland		-		-	-		-		-		-
Total commercial real estate loans		102,269		3.5		90.2		9.8		3.4		96.6
Consumer:		-		-	-		-		-		-
SFR 1-4 1st lien
SFR HELOCs and junior liens		-		-	-		-		-		-
Other		-		-	-		-		-		-
Total consumer loans		-		-		-		-		-		-
Commercial and industrial		4,493	0.7		98.8	1.2	1.4	98.6
Construction		24,176	8.5		100.0		-		-	100.0
Agriculture production		-		-	-		-		-		-
Leases		-		-		-		-		-		-
Total modifications	$	130,938		2.71 %		92.32 %		7.68 %	2.73 %	97.27 %

Total loan modifications associated with CARES Act legislation made during the nine months ended September 30, 2020 totaled approximately $422.53 million of which $130.94 million remained outstanding under their modified terms as of September 30, 2020. Approximately $95.33 million and $35.61 million of the remaining balance of loans with modified terms are expected to conclude their modification period during the quarters ended December 31, 2020 and March 31, 2021, respectively. However, as long as the current pandemic and recessionary economic conditions continue, it is anticipated that additional borrowers may request an initial or subsequent modification to their loan terms.

The total loan modifications made under the CARES Act during 2020 are inclusive of seven borrowers with loan balances totaling approximately $26.52 million who requested and were granted a second modification and deferral. Six of these second modifications and deferrals were for a period of three additional months. As of September 30, 2020 the second deferral period had concluded and the loans returned to their regular payment terms. The remaining borrower whom received a second loan modification was granted a six month deferral on an outstanding loan balance of $597,000 and is scheduled to return to payment status in January 2021.

Management believes that its analysis of each borrower receiving a loan modification supports the ability of that borrower to return to their normal payment terms at the conclusion of the modification period. As such management determined that a risk downgrade to each credit receiving a deferral modification was prudent until such time that the borrower's actual payment performance supported an upgrade to the pre-modification risk grade.

3

Balance Sheet

Total loans outstanding grew to $4.83 billion as of September 30, 2020, an increase of 15.4% over the same quarter of the prior year, and an annualized increase of 2.1% over the trailing quarter. Investments outstanding increased to $1.47 billion as of September 30, 2020, an increase of 35.5% annualized over the trailing quarter. Average earning assets to total average assets continued to increase slightly to 92.3% at September 30, 2020, as compared to 90.6% and 90.0% at June 30, 2020, and September 30, 2019, respectively.

The Company's loan to deposit ratio was 76.1% at September 30, 2020, as compared to 76.8% and 79.0% at June 30, 2020, and September 30, 2019, respectively.

Total shareholders' equity increased by $16,576,000 during the quarter ended September 30, 2020 primarily as a result of net income of $17,606,000 and an increase in accumulated other comprehensive income of $4,957,000, partially offset by $6,549,000 in cash dividends paid on common stock. As a result, the Company's book value increased to $30.31 per share at September 30, 2020 as compared to $29.76 and $29.39 at June 30, 2020, and September 30, 2019, respectively. The Company's tangible book value per share, a non-GAAP measure, calculated by subtracting goodwill and other intangible assets from total shareholders' equity and dividing that sum by total shares outstanding, was $22.24 per share at September 30, 2020 as compared to $21.64 and $21.33 at June 30, 2020, and September 30, 2019, respectively.

Trailing Quarter Balance Sheet Change

Ending balances	As of September 30,			As of June 30,					Annualized
(dollars in thousands)		2020			2020			$ Change		% Change
Total assets	$	7,449,799		$	7,360,071		$	89,728		4.9 %
Total loans		4,826,338			4,801,405			24,933	2.1 %
Total loans, excluding PPP		4,400,390			4,377,974			22,416	2.0 %
Total investments		1,473,935			1,353,728			120,207	35.5 %
Total deposits	$	6,340,588	$	6,248,258	$	92,330	5.9 %

The growth of deposit balances continued during the third quarter of 2020, increasing by $92,330,000 or 5.9% annualized. The available liquidity from deposit growth was largely allocated to fund investment growth during the period, which increased by $120,207,000, or 35.5% annualized. Loan growth continued during the third quarter of 2020, increasing by $24,933,000 or 2.1% on an annualized basis. This was primarily attributed to organic non-PPP loan originations of $22,416,000 or 2.0% of loan balances, excluding PPP, during the quarter ended September 30, 2020.

Average Trailing Quarter Balance Sheet Change

Qtrly avg balances	As of September 30,			As of June 30,					Annualized
(dollars in thousands)		2020			2020	$	Change		% Change
Total assets	$	7,380,961		$	7,027,735		$	353,226		20.1 %
Total loans		4,827,564			4,656,050			171,514	14.7 %
Total loans, excluding PPP		4,389,672			4,363,481			26,191	2.4 %
Total investments		1,376,212			1,371,733			4,479	1.3 %
Total deposits	$	6,278,638	$	5,937,294	$	341,344	23.0 %

The growth in average loans of $171,514,000, or 14.7% on an annualized basis, during the third quarter of 2020 was generally consistent with the annual year over year growth rate of 15.4%, but well above the annualized quarterly growth of 2.1%. The significant volume of PPP loans originated late in the second quarter, the majority of which remain outstanding as of September 30, 2020, are the most significant driver for the quarterly average increase. The Company also generated core loan growth, with the average balance of non-PPP loans by increasing by $26,191,000, or an annualized change of 2.4% during the period.

Year Over Year Balance Sheet Change

Ending balances		As of September 30,
(dollars in thousands)		2020			2019			$ Change		% Change
Total assets	$	7,449,799		$	6,384,883		$	1,064,916		16.7 %
Total loans		4,826,338			4,182,348			643,990	15.4 %
Total loans, excluding PPP		4,400,390			4,182,348			218,042	5.2 %
Total investments		1,473,935			1,397,753			76,182	5.5 %
Total deposits	$	6,340,588	$	5,295,407	$	1,045,181	19.7 %

As discussed above, the PPP program generated significant increases in volume during the nine months ended September 30, 2020 for loan and deposit balances. Excess deposit proceeds have been temporarily allocated to cash and due from banks, which increased to $652,582,000 at September 30, 2020 from $259,047,000 as of September 30, 2019. Investment securities increased to $1,473,935,000, a change of $76,182,000 or 5.5% from $1,397,753,000 at September 30, 2019. The Company purchased approximately $196,118,000 in securities during the three months ended September 30, 2020, offset largely by an accelerated rate of prepayment or maturity of these debt instruments totaling $79,621,000 correlating with the historically low interest rate environment. Total average loans as a percentage of total earning assets were 70.8% for the quarter ended September 30, 2020, a decrease of 0.5% over the September 30, 2019 ratio of 71.3%.

4