UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
July 25, 2005
TriCo Bancshares
(Exact name of registrant as specified in its charter)
California 0-10661 94-2792841
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(State or other (Commission File No.) (I.R.S. Employer
jurisdiction of Identification No.)
incorporation or organization)
63 Constitution Drive, Chico, California 95973
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:(530) 898-0300
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 2.02: Results of Operations and Financial Condition
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On July 25, 2005 TriCo Bancshares announced its quarterly earnings for the
period ended June 30, 2005. A copy of the press release is attached as Exhibit
99.1 to this Form 8-K and is incorporated herein by reference.
Item 9.01: Exhibits
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(c) Exhibits
99.1 Press release dated July 25, 2005
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
TRICO BANCSHARES
Date: July 25, 2005 By: /s/ Thomas J. Reddish
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Thomas J. Reddish, Executive Vice
President and Chief Financial Officer
(Principal Financial and Accounting
Officer)
INDEX TO EXHIBITS
Exhibit No. Description
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99.1 Press release dated July 25, 2005
PRESS RELEASE Contact: Thomas J. Reddish
For Immediate Release Executive Vice President & CFO
(530) 898-0300
TRICO BANCSHARES ANNOUNCES RECORD EARNINGS IN
SECOND QUARTER 2005
CHICO, Calif. - (July 25, 2005) - TriCo Bancshares (NASDAQ: TCBK), parent
company of Tri Counties Bank, today announced record quarterly earnings of
$5,737,000 for the quarter ended June 30, 2005. This represents an 18.4%
increase when compared with earnings of $4,847,000 for the quarter ended June
30, 2004. Diluted earnings per share for the quarter ended June 30, 2005
increased 16.7% to $0.35 from $0.30 for the quarter ended June 30, 2004. Total
assets of the Company increased $174,554,000 (11.3%) to $1,720,643,000 at June
30, 2005 from $1,546,089,000 at June 30, 2004. Total loans of the Company
increased $171,588,000 (15.9%) to $1,250,052,000 at June 30, 2005 from
$1,078,464,000 at June 30, 2004. Total deposits of the Company increased
$132,825,000 (10.5%) to $1,400,177,000 at June 30, 2005 from $1,267,352,000 at
June 30, 2004. Diluted earnings per share for the six months ended June 30, 2005
and 2004 were $0.67 and $0.59, respectively, on earnings of $10,976,000 and
$9,624,000, respectively.
The increase in earnings from the quarter ended June 30, 2004 was due to a
$1,580,000 (9.0%) increase in net interest income to $19,121,000, and a $744,000
(57.0%) decrease in provision for loan losses. These contributing factors were
partially offset by a $632,000 (9.1%) decrease in noninterest income to
$6,310,000 and a $110,000 (0.7%) increase in noninterest expense to $15,517,000
for the quarter ended June 30, 2005 compared to the quarter ended June 30, 2004.
The increase in net interest income was the net effect of a $159,894,000 (11.8%)
increase in the average balance of interest-earning assets to $1,511,668,000 and
a 0.15% decrease in net interest margin on those interest-earning assets to
5.12% versus the quarter ended June 30, 2004. The decrease in net interest
margin is mainly due to rising short-term interest rates, and steady to
declining long-term interest rates, during the period from June 30, 2004 to June
30, 2005.
The $744,000 decrease in provision for loan losses was due to the continued
improvement in the credit quality of the Company's loan portfolio. Net loan
charge-offs during the quarter were $232,000. Nonperforming loans, net of
government agency guarantees, were $2,922,000 at June 30, 2005 compared to
$4,931,000 and $3,886,000 at December 31, 2004 and June 30, 2004, respectively.
The Company's allowance for losses, which consists of the allowance for loan
losses and the reserve for unfunded commitments, was $16,563,000 or 1.32% of
total loans outstanding and 567% of nonperforming loans compared to $15,529,000
or 1.44% of total loans outstanding and 327% o nonperforming loans at June 30,
2004.
Included in the results for the quarter ended June 30, 2004 was a $570,000
recovery of mortgage servicing rights valuation allowance, and $182,000 from
gain on sale of other real estate. Excluding these items, noninterest income for
the quarter ended June 30, 2004 would have been $6,190,000, and the $6,310,000
of noninterest income for the quarter ended June 30, 2005 would have represented
a $120,000 (1.9%) increase.
Noninterest expense for the second quarter of 2005 increased $110,000 (0.7%) to
$15,517,000 from $15,407,000 in the second quarter of 2004. The increase in
noninterest expense was the result of a $32,000 (0.4%) decrease in salary and
benefit expense to $8,408,000 offset by a $142,000 net increase in other
noninterest expense categories. The decrease in salary and benefits expense was
the net result of annual salary increases, and new employees from the opening of
de-novo branches in Woodland (November 2004), and Lincoln (February 2005),
offset by reduced incentive commissions, overtime, and workers compensation
expense. Included in the $142,000 net increase in other noninterest income
categories was a $101,000 increase in advertising expense, and a $324,000
decrease in professional fees.
As of June 30, 2005, the Company had repurchased 341,100 shares of its common
stock under its stock repurchase plan announced on July 31, 2003 and amended on
April 9, 2004, which left 158,900 shares available for repurchase under the
plan.
Richard Smith, President and Chief Executive Officer commented, "We are pleased
with the performance of our company during the quarter ended June 30, 2005. Loan
growth during this most recent quarter was strong, and the credit quality of our
loan portfolio remained excellent and continued to improve. Deposit growth of
nearly eleven percent from the year-ago quarter end and another quarter of
double-digit growth in earnings per share when compared to the year-ago quarter
are evidence that our growth strategy has been effective. We will continue to
execute our growth strategy throughout the Central Valley of California as
evidenced by the announcement of the start of construction of a new Sacramento
banking and financial center on June 1, 2005." The location for the new
financial center is across from Arden Fair Mall on Challenge Way, a popular and
convenient area for entertainment, shopping and dining. The anticipated grand
opening is currently planned for September 2005. The Arden Fair branch will
remain open during construction. "We are acting on our promise to open more
branches in the Sacramento area," said Mr. Smith, "We have taken the time needed
to build an infrastructure, now we are ready to fully present the Tri Counties
Bank community banking philosophy to the Sacramento market. Our Arden Fair hub
will connect the network of branches we have in place throughout Sacramento and
will solidify our goal to become the community bank of choice in the Sacramento
Valley." Tri Counties Bank has been aggressively opening new branches throughout
Sacramento for the past five years. The bank announced last summer its plan to
open six additional branches in the Sacramento area, three of which have already
started serving customers inside Raley's and Bel Air supermarkets in Woodland,
Lincoln and Folsom.
In addition to the historical information contained herein, this press release
contains certain forward-looking statements. The reader of this press release
should understand that all such forward-looking statements are subject to
various uncertainties and risks that could affect their outcome. The Company's
actual results could differ materially from those suggested by such
forward-looking statements. Factors that could cause or contribute to such
differences include, but are not limited to, variances in the actual versus
projected growth in assets, return on assets, loan losses, expenses, rates
charged on loans and earned on securities investments, rates paid on deposits,
competition effects, fee and other noninterest income earned as well as other
factors. This entire press release should be read to put such forward-looking
statements in context and to gain a more complete understanding of the
uncertainties and risks involved in the Company's business.
TriCo Bancshares and Tri Counties Bank are headquartered in Chico, California.
Tri Counties Bank has a 30-year history in the banking industry. Tri Counties
Bank operates 32 traditional branch locations and 15 in-store branch locations
in 22 California counties. Tri Counties Bank offers financial services and
provides a diversified line of products and services to consumers and
businesses, which include demand, savings and time deposits, consumer finance,
online banking, mortgage lending, and commercial banking throughout its market
area. It operates a network of 60 ATMs and a 24-hour, seven days a week
telephone customer service center. Brokerage services are provided at the Bank's
offices by the Bank's association with Raymond James Financial, Inc. For further
information please visit the Tri Counties Bank web-site at
http://www.tricountiesbank.com.
TRICO BANCSHARES - CONSOLIDATED FINANCIAL DATA
(Unaudited. Dollars in thousands, except per share data)
Three months ended
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June 30, March 31, December 31, September 30, June 30,
2005 2005 2004 2004 2004
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Statement of Income Data
Interest income $23,910 $22,636 $22,441 $21,951 $20,628
Interest expense 4,789 4,121 3,768 3,494 3,087
Net interest income 19,121 18,515 18,673 18,457 17,541
Provision (benefit) for loan losses 561 100 (183) 1,166 1,305
Noninterest income:
Service charges and fees 4,505 4,062 4,266 4,434 4,910
Other income 1,805 1,265 1,470 1,927 2,032
Total noninterest income 6,310 5,327 5,736 6,361 6,942
Noninterest expense:
Salaries and benefits 8,408 8,369 8,265 8,319 8,440
Intangible amortization 346 343 343 343 343
Provision for losses -
unfunded commitments 39 100 483 134 (5)
Other expense 6,724 6,301 6,724 6,427 6,629
Total noninterest expense 15,517 15,113 15,815 15,223 15,407
Income before taxes 9,353 8,629 8,777 8,429 7,771
Net income $5,737 $5,239 $5,355 $5,203 $4,847
Share Data (1)
Basic earnings per share $0.37 $0.33 $0.34 $0.33 $0.31
Diluted earnings per share 0.35 0.32 0.33 0.32 0.30
Book value per common share 9.10 8.87 8.79 8.64 8.20
Tangible book value per common share $7.81 $7.57 $7.45 $7.33 $6.87
Shares outstanding 15,684,092 15,733,517 15,723,317 15,697,817 15,639,897
Weighted average shares 15,701,867 15,729,725 15,712,605 15,672,300 15,639,556
Weighted average diluted shares 16,288,728 16,366,705 16,396,447 16,247,422 16,215,160
Credit Quality
Non-performing loans, net of
government agency guarantees $2,922 $4,072 $4,906 $4,931 $3,886
Other real estate owned - - - - 628
Loans charged-off 513 295 579 687 178
Loans recovered $281 $233 $120 $74 $110
Allowance for losses to total loans(2) 1.32% 1.37% 1.37% 1.44% 1.44%
Allowance for losses to NPLs(2) 567% 398% 296% 329% 400%
Allowance for losses to NPAs(2) 567% 398% 296% 329% 344%
Selected Financial Ratios
Return on average total assets 1.37% 1.29% 1.35% 1.34% 1.29%
Return on average equity 16.03% 14.83% 15.44% 15.57% 14.97%
Average yield on loans 6.85% 6.69% 6.82% 6.87% 6.82%
Average yield on interest-earning assets 6.39% 6.25% 6.33% 6.35% 6.18%
Average rate on interrest-bearing liabilities 1.62% 1.43% 1.35% 1.25% 1.14%
Net interest margin (fully tax-equivalent) 5.12% 5.12% 5.28% 5.35% 5.27%
Total risk based capital ratio 11.5% 11.9% 11.9% 12.4% 12.4%
Tier 1 Capital ratio 10.5% 10.8% 10.7% 11.0% 10.9%
(1) Share and per share data for all periods have been adjusted to reflect the 2-for-1 stock split announced
March 11, 2004 payable on April 30, 2004 to shareholders of record on April 9, 2004.
(2) Allowance for losses includes allowance for loan losses and reserve for unfunded commitments.
TRICO BANCSHARES - CONSOLIDATED FINANCIAL DATA
(Unaudited. Dollars in thousands, except per share data)
Three months ended
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June 30, March 31, December 31, September 30, June 30,
2005 2005 2004 2004 2004
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Balance Sheet Data
Cash and due from banks $79,287 $77,365 $70,037 $64,318 $65,512
Federal funds sold 235 181 - - -
Securities, available-for-sale 288,902 293,730 286,013 286,067 302,341
Federal Home Loan Bank Stock 7,440 6,781 6,781 6,719 6,642
Loans
Commercial loans 137,620 125,354 140,332 151,998 146,262
Consumer loans 456,247 425,437 410,198 384,560 357,901
Real estate mortgage loans 573,836 556,059 544,373 527,808 518,696
Real estate construction loans 82,349 75,583 78,064 62,057 55,605
Total loans, gross 1,250,052 1,182,433 1,172,967 1,126,423 1,078,464
Allowance for loan losses (14,892) (14,563) (14,525) (15,167) (14,613)
Premises and equipment 21,182 20,599 19,853 20,118 18,996
Cash value of life insurance 41,099 40,699 40,479 40,196 39,844
Goodwill 15,519 15,519 15,519 15,519 15,519
Intangible assets 4,719 5,065 5,408 5,070 5,412
Other assets 27,100 27,803 24,974 25,283 27,972
Total assets 1,720,643 1,655,612 1,627,506 1,574,546 1,546,089
Deposits
Noninterest-bearing demand deposits 332,887 312,738 311,275 298,319 282,292
Interest-bearing demand deposits 236,134 238,787 230,763 224,619 224,552
Savings deposits 466,062 484,660 474,414 474,345 476,798
Time certificates 365,094 362,564 332,381 294,858 283,710
Total deposits 1,400,177 1,398,749 1,348,833 1,292,141 1,267,352
Federal funds purchased & repurchase agreements 83,000 20,700 46,400 57,300 66,000
Reserve for unfunded commitments 1,671 1,632 1,532 1,049 916
Other liabilities 24,161 25,483 23,219 19,971 19,397
Other borrowings 27,628 28,176 28,152 27,159 22,866
Junior subordinated debt 41,238 41,238 41,238 41,238 41,238
Total liabilities 1,577,875 1,515,978 1,489,374 1,438,858 1,417,769
Total shareholders' equity 142,768 139,634 138,132 135,688 128,320
Accumulated other
comprehensive income (loss) (1,468) (2,242) (352) 1,155 (1,984)
Average loans 1,209,061 1,167,039 1,142,483 1,098,442 1,029,425
Average interest-earning assets 1,511,668 1,464,028 1,433,641 1,399,342 1,351,774
Average total assets 1,679,653 1,628,827 1,592,464 1,552,743 1,505,261
Average deposits 1,407,586 1,363,064 1,343,273 1,275,599 1,252,472
Average total equity $143,196 $141,264 $138,727 $133,628 $129,481