Trico Bancshares (TCBK) risk factors, FY2024 10-K

Risks Related to the Nature and Geographic Area of Our Business

1. 01The majority of our assets are loans, which are subject to credits risks
2. 0211 TriCo Bancshares 2024 10-K
3. 03Our allowance for credit losses may not be adequate to cover actual losses
4. 04Our business may be adversely affected by business conditions in California
5. 05Severe weather, natural disasters and other external events could adversely affect our business
6. 06A significant majority of the loans in our portfolio are secured by California real estate and a decline in real estate values could hurt our business
7. 07We have significant exposure to risks associated with commercial real estate lending
8. 08We are exposed to the risk of environmental liabilities with respect to properties to which we take title
9. 09We face strong competition from financial services companies and other companies that offer similar services, which could materially and adversely affect our business
10. 10We may be adversely affected by the soundness of other financial institutions
11. 11We may need to raise additional capital, but it may not be available on acceptable terms or at all
12. 12Adverse changes in economic or market conditions, including health related events, may hurt our businesses
13. 13Adverse developments affecting the financial services industry, such as the failure of three banks in the first half of 2023 or concerns involving liquidity, may have a material effect on the Company’s liquidity, earnings and financial condition

Risks Related to Interest Rates

1. 14Our business is subject to interest rate risk and variations in interest rates may negatively affect our financial performance
2. 15Reduction in the value, or impairment of our investment securities, can impact our earnings and common shareholders’ equity
3. 16If we are required to sell securities to meet liquidity needs, we could realize significant losses

Risks Related to Regulatory and Legal Matters

1. 1715 TriCo Bancshares 2024 10-K

Risks Related to Our Growth and Expansion

1. 18Goodwill resulting from acquisitions may adversely affect our results of operations
2. 19Potential acquisitions may disrupt our business and dilute shareholder value, we may not be able to successfully consummate or integrate such acquisitions, and we may not realize the anticipated benefits contemplated when pursuing a potential acquisition
3. 2016 TriCo Bancshares 2024 10-K
4. 21If we cannot attract deposits, our growth may be inhibited
5. 22Our growth and expansion may strain our ability to manage our operations and our financial resources
6. 23We will become subject to increased regulation when we have more than $10 billion in total consolidated assets

Risks Relating to Ownership of Our Common Stock

1. 24Our ability to pay dividends is subject to legal and regulatory restrictions
2. 2517 TriCo Bancshares 2024 10-K
3. 26Provisions of our governing documents and federal law may limit the ability of another party to acquire us, which could cause our stock price to decline
4. 27Holders of our junior subordinated debentures have rights that are senior to those of our shareholders

Risks Relating to Operations, Technology Systems, Accounting and Internal Controls

1. 28We experienced a criminal cyberattack in February 2023, which resulted in the temporary interruption of our systems, disclosure of certain confidential information, litigation and governmental inquiries, all of which could damage our reputation or create additional financial and legal exposure
2. 2918 TriCo Bancshares 2024 10-K
3. 30We face the risk that failures or breaches, including cyberattacks, of our operational or security systems or of those of our customers or vendors, could disrupt our business, result in the disclosure of confidential information, damage our reputation, and create significant financial and legal exposure
4. 3119 TriCo Bancshares 2024 10-K
5. 32Our reliance on third-party vendors exposes us to risks, including additional cybersecurity risks
6. 3320 TriCo Bancshares 2024 10-K
7. 34Our business is highly reliant on technology and our ability and our third-party service providers to manage the operational risks associated with technology
8. 35Cybersecurity and data privacy are areas of heightened legislative and regulatory focus
9. 36A failure to implement technological advances could negatively impact our business
10. 3721 TriCo Bancshares 2024 10-K
11. 38Our business is susceptible to fraud and conduct risk
12. 39New lines of business, products or services and technological advancements, like artificial intelligence, may subject us to additional risks
13. 40We are subject to claims and litigation pertaining to intellectual property
14. 4122 TriCo Bancshares 2024 10-K
15. 42Our failure to comply with anti-money laundering and anti-terrorism financing laws could have significant adverse consequences for us
16. 43We can be negatively affected if we fail to identify and address operational risks associated with the introduction of or changes to products, services and delivery platforms
17. 44Our business, financial condition and results of operations are subject to risk from changes in customer behavior
18. 45Our risk management framework may not be effective in identifying and mitigating every risk to us
19. 46We depend on key personnel and the loss of one or more of those key personnel may materially and adversely affect our prospects. Furthermore, our business could suffer if we fail to attract and retain skilled people
20. 47Litigation, regulatory actions and compliance issues could subject us to significant fines, penalties, judgments, remediation costs and/or requirements resulting in increased expenses
21. 48We are subject to risk from fluctuating conditions in the financial markets and economic and political conditions generally
22. 4924 TriCo Bancshares 2024 10-K
23. 50Changes in the Federal, state or local tax laws may negatively impact our financial performance and we are subject to examinations and challenges by tax authorities
24. 51Climate change could have a material negative impact on us and our clients