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):
April 26, 2007
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 April 26, 2007 TriCo Bancshares announced its quarterly earnings for the
period ended March 31, 2007. 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 April 26, 2007
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: April 26, 2007 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 April 26, 2007
PRESS RELEASE Contact: Thomas J. Reddish
For Immediate Release Executive Vice President & CFO
(530) 898-0300
TRICO BANCSHARES ANNOUNCES QUARTERLY EARNINGS
CHICO, Calif. - (April 26, 2007) - TriCo Bancshares (NASDAQ: TCBK), parent
company of Tri Counties Bank, today announced quarterly earnings of $6,444,000
for the quarter ended March 31, 2007. This represents a 1.4% decrease when
compared with earnings of $6,535,000 for the quarter ended March 31, 2006.
Diluted earnings per share for the quarter ended March 31, 2007 decreased 2.5%
to $0.39 from $0.40 for the quarter ended March 31, 2006. Total assets of the
Company increased $36,795,000 (2.0%) to $1,866,321,000 at March 31, 2007 versus
$1,829,526,000 at March 31, 2006. Total loans of the Company increased
$95,506,000 (6.8%) to $1,495,614,000 at March 31, 2007 versus $1,400,108,000 at
March 31, 2006. Total deposits of the Company increased $9,458,000 (0.6%) to
$1,536,849,000 at March 31, 2007 versus $1,527,391,000 at March 31, 2006.
Richard Smith, President and Chief Executive Officer, commented, "Our results
for the first quarter of 2007 are reflective of the continued challenging
interest rate environment and competitive pressures. Also, while we are happy to
report that we are not involved in subprime lending, we also believe that the
slowdown in real estate value appreciation and real estate activity in general
is affecting both wholesale and retail banking growth rates. We are optimistic
about the prospects of our Company as we continue to add customers and expand
our franchise in a profitable manner despite this challenging environment."
The decrease in earnings from the year-ago quarter was primarily due to a
$538,000 (3.3%) increase in noninterest expense to $16,960,000, offset by a
$198,000 (0.9%) increase in fully tax-equivalent net interest income to
$21,666,000 and a $152,000 (2.4%) increase in noninterest income for the quarter
ended March 31, 2007.
The $198,000 (0.9%) increase in net interest income (FTE) from the year-ago
quarter was due to a $45,797,000 (2.8%) increase in average balances of earning
assets to $1,692,574,000 and a 0.09% decrease in net interest margin (FTE) to
5.12%.
The $152,000 (2.4%) increase in noninterest income from the year-ago quarter was
mainly due to a $131,000 (16.0%) increase in ATM fees and interchange revenue to
$949,000 and an $85,000 (2.4%) increase in service charges on deposit accounts
to $3,559,000. The increase in these areas is mainly due to the expansion of the
Company's ATM network and growth in number of customers.
The $538,000 (3.3%) increase in noninterest expense from the year-ago quarter
was due to a $586,000 (6.4%) increase in salaries and benefits expense to
$9,742,000 that was partially offset by a $48,000 (0.7%) decrease in other
noninterest expenses. The increase in salaries and benefits expense was mainly
due to annual salary increases, and a 4.1% increase in average full time
equivalent staff made up primarily of new employees at the Company's recently
opened branches. The decrease in other noninterest expense was mainly due to a
$223,000 (64%) decrease in intangible amortization to $123,000 that was
partially offset by a $117,000 provision for losses related to unfunded
commitments. The decrease in intangible amortization was due to the core deposit
intangible related to the purchase of several branches in 1997 becoming fully
amortized in the fourth quarter of 2006.
The provision for loan losses was $482,000 for the three months ended March 31,
2007 compared to $500,000 for the year-ago quarter. Net loan charge-offs during
the quarter ended March 31, 2007 were $501,000 compared to $82,000 in the
year-ago quarter. Nonperforming loans, net of government agency guarantees, were
$5,991,000 at March 31, 2007 compared to $4,512,000 and $4,048,000 at December
31, 2006 and March 31, 2006, respectively. The Company's allowance for losses at
March 31, 2007, which consists of the allowance for loan losses and the reserve
for unfunded commitments, was $18,861,000 or 1.26% of total loans outstanding
and 315% of nonperforming loans.
As of March 31, 2007, the Company had repurchased 394,371 shares of its common
stock under its stock repurchase plan announced on July 31, 2003 and amended on
April 9, 2004, which left 105,629 shares available for repurchase under the
plan.
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 32-year history in the banking industry. Tri Counties
Bank operates 32 traditional branch locations and 22 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 62 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 share data)
Three months end
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March 31, December 31, September 30, June 30, March 31,
2007 2006 2006 2006 2006
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Statement of Income Data
Interest income $30,661 $31,545 $31,421 $29,379 $27,978
Interest expense 9,216 9,821 9,576 8,275 6,773
Net interest income 21,445 21,724 21,845 21,104 21,205
Provision for loan losses 482 - 235 554 500
Noninterest income:
Service charges and fees 5,061 4,940 5,056 4,956 4,857
Other income 1,539 1,687 1,593 1,575 1,591
Total noninterest income 6,600 6,627 6,649 6,531 6,448
Noninterest expense:
Salaries and benefits 9,742 9,405 9,276 8,618 9,156
Intangible amortization 123 350 350 350 346
Provision for losses -
unfunded commitments 117 - - 36 -
Other expense 6,978 7,247 7,400 7,272 6,920
Total noninterest expense 16,960 17,002 17,026 16,276 16,422
Income before taxes 10,603 11,349 11,233 10,805 10,731
Net income $6,444 $6,918 $6,820 $6,557 $6,535
Share Data
Basic earnings per share $0.41 $0.44 $0.43 $0.42 $0.42
Diluted earnings per share 0.39 0.42 0.42 0.40 0.40
Book value per common share 10.96 10.69 10.41 9.96 9.68
Tangible book value per common share $9.89 $9.60 $9.22 $8.75 $8.44
Shares outstanding 15,910,291 15,857,207 15,857,107 15,855,107 15,778,090
Weighted average shares 15,878,929 15,857,166 15,855,933 15,798,565 15,736,544
Weighted average diluted shares 16,415,845 16,396,320 16,365,858 16,388,855 16,379,595
Credit Quality
Non-performing loans, net of
government agency guarantees $5,991 $4,512 $4,523 $3,913 $4,048
Other real estate owned 187 - - - -
Loans charged-off 739 498 368 564 357
Loans recovered $238 $419 $233 $259 $275
Allowance for losses to total loans(1) 1.26% 1.24% 1.25% 1.29% 1.32%
Allowance for losses to NPLs(1) 315% 416% 417% 479% 456%
Allowance for losses to NPAs(1) 305% 416% 417% 479% 456%
Selected Financial Ratios
Return on average total assets 1.38% 1.46% 1.45% 1.42% 1.43%
Return on average equity 14.79% 16.23% 16.64% 16.68% 16.93%
Average yield on loans 7.63% 7.81% 7.82% 7.44% 7.24%
Average yield on interest-earning assets 7.30% 7.43% 7.44% 7.07% 6.86%
Average rate on interest-bearing liabilities 2.85% 2.97% 2.86% 2.50% 2.11%
Net interest margin (fully tax-equivalent) 5.12% 5.13% 5.19% 5.10% 5.21%
Total risk based capital ratio 11.8% 11.3% 11.1% 11.1% 11.1%
Tier 1 Capital ratio 10.8% 10.3% 10.1% 10.1% 10.0%
(1) Allowance for losses includes allowance for loan losses and reserve for unfunded commitments.
TRICO BANCSHARES - CONSOLIDATED FINANCIAL DATA
(Unaudited. Dollars in thousands, except share data)
Three months ended
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March 31, December 31, September 30, June 30, March 31,
2007 2006 2006 2006 2006
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Balance Sheet Data
Cash and due from banks $75,263 $102,220 $78,281 $84,663 $78,742
Federal funds sold - 794 1,387 526 -
Securities, available-for-sale 188,478 198,361 209,886 221,828 244,441
Federal Home Loan Bank Stock 8,442 8,320 8,206 8,103 7,691
Loans
Commercial loans 142,083 153,105 153,705 146,952 134,049
Consumer loans 516,550 525,513 527,185 517,588 510,809
Real estate mortgage loans 687,088 679,661 661,962 642,422 630,821
Real estate construction loans 149,893 151,600 164,307 149,046 124,429
Total loans, gross 1,495,614 1,509,879 1,507,159 1,456,008 1,400,108
Allowance for loan losses (16,895) (16,914) (16,993) (16,893) (16,644)
Premises and equipment 20,924 21,830 21,556 21,597 21,068
Cash value of life insurance 43,941 43,536 42,991 42,571 42,168
Goodwill 15,519 15,519 15,519 15,519 15,519
Intangible assets 1,543 1,666 3,361 3,711 4,061
Other assets 33,492 34,755 32,651 33,523 32,372
Total assets 1,866,321 1,919,966 1,904,004 1,871,156 1,829,526
Deposits
Noninterest-bearing demand deposits 364,401 420,025 357,754 354,576 354,514
Interest-bearing demand deposits 235,497 230,671 229,143 235,100 249,064
Savings deposits 381,069 374,605 369,933 388,847 432,087
Time certificates 555,882 573,848 568,344 535,917 491,726
Total deposits 1,536,849 1,599,149 1,525,174 1,514,440 1,527,391
Federal funds purchased 38,000 38,000 106,500 96,700 45,800
Reserve for unfunded commitments 1,966 1,849 1,849 1,849 1,813
Other liabilities 32,524 30,383 28,254 24,964 29,046
Other borrowings 41,347 39,911 35,848 33,971 31,441
Junior subordinated debt 41,238 41,238 41,238 41,238 41,238
Total liabilities 1,691,924 1,750,530 1,738,863 1,713,162 1,676,729
Total shareholders' equity 174,397 169,436 165,141 157,994 152,797
Accumulated other
comprehensive loss (3,988) (4,521) (3,607) (5,629) (5,330)
Average loans 1,490,055 1,498,040 1,477,551 1,427,735 1,384,541
Average interest-earning assets 1,692,574 1,711,743 1,701,166 1,676,705 1,646,777
Average total assets 1,865,448 1,890,765 1,880,029 1,850,487 1,822,441
Average deposits 1,534,473 1,550,979 1,501,630 1,497,571 1,498,825
Average total equity $174,262 $170,518 $163,919 $157,232 $154,410