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):
October 26, 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 October 26, 2005 TriCo Bancshares announced its quarterly earnings for the
period ended September 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 October 26, 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: October 27, 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 October 26, 2005
PRESS RELEASE Contact: Thomas J. Reddish
For Immediate Release Executive Vice President & CFO
(530) 898-0300
TRICO BANCSHARES ANNOUNCES RECORD EARNINGS IN
THIRD QUARTER 2005
CHICO, Calif. - (October 26, 2005) - TriCo Bancshares (NASDAQ: TCBK), parent
company of Tri Counties Bank, today announced record quarterly earnings of
$5,961,000 for the quarter ended September 30, 2005. This represents a 14.6%
increase when compared with earnings of $5,203,000 for the quarter ended
September 30, 2004. Diluted earnings per share for the quarter ended September
30, 2005 increased 15.6% to $0.37 from $0.32 for the quarter ended September 30,
2004. Total assets of the Company increased $212,310,000 (13.5%) to
$1,786,856,000 at September 30, 2005 from $1,574,546,000 at September 30, 2004.
Total loans of the Company increased $201,667,000 (17.9%) to $1,328,090,000 at
September 30, 2005 from $1,126,423,000 at September 30, 2004. Total deposits of
the Company increased $146,158,000 (11.3%) to $1,438,299,000 at September 30,
2005 from $1,292,141,000 at September 30, 2004. Diluted earnings per share for
the nine months ended September 30, 2005 and 2004 were $1.04 and $0.91,
respectively, on earnings of $16,937,000 and $14,827,000, respectively.
The improvement in results from the year-ago quarter was due to a $1,374,000
(7.3%) increase in fully tax-equivalent (FTE) net interest income to
$20,086,000, a $219,000 (18.8%) decrease in provision for loan losses to
$947,000, and a $271,000 (4.3%) increase in noninterest income to $6,632,000.
These contributing factors were partially offset by a $457,000 (3.0%) increase
in noninterest expense to $15,680,000 for the quarter ended September 30, 2005.
The increase in net interest income (FTE) was due to a $175,050,000 (12.5%)
increase in average balances of interest-earning assets to $1,574,392,000 offset
by a 0.25% decrease in net interest margin (FTE) to 5.10%. The decrease in net
interest margin from the year-ago quarter was mainly due to rising short-term
interest rates, and steady to declining long-term interest rates, during the
period from June 30, 2004 to September 30, 2005.
The $219,000 decrease in provision for loan losses was due to the continued
excellent credit quality of the Company's loan portfolio. Net loan charge-offs
during the quarter were $43,000. Nonperforming loans, net of government agency
guarantees, were $3,048,000 at September 30, 2005 compared to $4,906,000 and
$4,931,000 at December 31, 2004 and September 30, 2004, respectively. The
Company's allowance for losses, which consists of the allowance for loan losses
and the reserve for unfunded commitments, was $17,470,000 or 1.32% of total
loans outstanding and 573% of nonperforming loans at September 30, 2005 compared
to $16,216,000 or 1.44% of total loans outstanding and 329% of nonperforming
loans at September 30, 2004.
Included in the results for the year-ago quarter ended September 30, 2004 was
$384,000 from gain on sale of other real estate. Excluding this item,
noninterest income for the quarter ended September 30, 2004 would have been
$5,977,000, and the $6,632,000 of noninterest income for the quarter ended
September 30, 2005 would have represented a $655,000 (11.0%) increase.
Noninterest expense for the third quarter of 2005 increased $457,000 (3.0%) to
$15,680,000 from $15,223,000 in the third quarter of 2004. The increase in
noninterest expense was the result of a $265,000 (3.2%) increase in salary and
benefit expense to $8,584,000 and a $192,000 (2.8%) net increase in other
noninterest expense categories to $7,096,000. The increase in salary and
benefits expense was the net result of annual salary increases, 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 $192,000 net increase in other noninterest
income categories was a $293,000 increase in advertising expense, and a $408,000
decrease in professional fees.
As of September 30, 2005, the Company had repurchased 351,100 shares of its
common stock under its stock repurchase plan announced on July 31, 2003 and
amended on April 9, 2004, which left 148,900 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 September 30, 2005.
Loan and deposit balances increased 17.9% and 11.3%, respectively, when compared
to year-ago quarter end balances. Our net interest margin and credit quality
have remained excellent and stable throughout 2005. As a result, our earnings
and our growth in earnings remain strong while we continue to execute our
ambitious expansion strategy. The grand opening of our Sacramento Financial
Center was received very positively by the Sacramento community. We are
confident this branch will perform well as the hub connecting all of our
in-store branches in the Sacramento region. Riding closely on the heels of our
Sacramento hub, our next new branch will open on November 2 inside a newly
constructed Wal-Mart Super Center in Roseville, which is a strong market that we
have specifically targeted for future growth. Additional plans for expansion
include three new in-store branches in the first quarter of 2006 in Sacramento,
Yuba City and Redding, adding more convenience and service for our strong
foundation in these communities." 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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September 30, June 30, March 31, December 31, September 30,
2005 2005 2005 2004 2004
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Statement of Income Data
Interest income $25,334 $23,910 $22,636 $22,441 $21,951
Interest expense 5,519 4,789 4,121 3,768 3,494
Net interest income 19,815 19,121 18,515 18,673 18,457
Provision (benefit) for loan losses 947 561 100 (183) 1,166
Noninterest income:
Service charges and fees 4,795 4,505 4,062 4,266 4,436
Other income 1,837 1,805 1,265 1,470 1,925
Total noninterest income 6,632 6,310 5,327 5,736 6,361
Noninterest expense:
Salaries and benefits 8,584 8,408 8,369 8,265 8,319
Intangible amortization 346 346 343 343 343
Provision for losses -
unfunded commitments 3 39 100 483 134
Other expense 6,747 6,724 6,301 6,724 6,427
Total noninterest expense 15,680 15,517 15,113 15,815 15,223
Income before taxes 9,820 9,353 8,629 8,777 8,429
Net income $5,961 $5,737 $5,239 $5,355 $5,203
Share Data(1)
Basic earnings per share $0.38 $0.37 $0.33 $0.34 $0.33
Diluted earnings per share 0.37 0.35 0.32 0.33 0.32
Book value per common share 9.30 9.10 8.87 8.79 8.64
Tangible book value per common share $8.04 $7.81 $7.57 $7.45 $7.33
Shares outstanding 15,728,106 15,684,092 15,733,517 15,723,317 15,697,817
Weighted average shares 15,687,547 15,701,867 15,729,725 15,712,605 15,672,300
Weighted average diluted shares 16,330,035 16,288,728 16,366,705 16,396,447 16,254,005
Credit Quality
Non-performing loans, net of
government agency guarantees $3,048 $2,922 $4,072 $4,906 $4,931
Other real estate owned - - - - -
Loans charged-off 479 513 295 579 687
Loans recovered $436 $281 $233 $120 $74
Allowance for losses to total loans(2) 1.32% 1.32% 1.37% 1.37% 1.44%
Allowance for losses to NPLs(2) 573% 567% 398% 327% 329%
Allowance for losses to NPAs(2) 573% 567% 398% 327% 329%
Selected Financial Ratios
Return on average total assets 1.37% 1.37% 1.29% 1.35% 1.34%
Return on average equity 16.26% 16.03% 14.83% 15.44% 15.57%
Average yield on loans 6.93% 6.85% 6.69% 6.82% 6.87%
Average yield on interest-earning assets 6.51% 6.39% 6.25% 6.33% 6.35%
Average rate on interest-bearing liabilities 1.79% 1.62% 1.43% 1.35% 1.25%
Net interest margin (fully tax-equivalent) 5.10% 5.12% 5.12% 5.28% 5.35%
Total risk based capital ratio 11.2% 11.5% 11.9% 11.9% 12.4%
Tier 1 Capital ratio 10.1% 10.5% 10.8% 10.7% 11.0%
(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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September 30, June 30, March 31, December 31, September 30,
2005 2005 2005 2004 2004
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Balance Sheet Data
Cash and due from banks $85,413 $79,287 $77,365 $70,037 $64,318
Federal funds sold 218 235 181 - -
Securities, available-for-sale 271,134 288,902 293,730 286,013 286,067
Federal Home Loan Bank Stock 7,516 7,440 6,781 6,781 6,719
Loans
Commercial loans 141,057 137,620 125,354 140,332 151,998
Consumer loans 494,277 456,247 425,437 410,198 384,560
Real estate mortgage loans 600,875 573,836 556,059 544,373 527,808
Real estate construction loans 91,881 82,349 75,583 78,064 62,057
Total loans, gross 1,328,090 1,250,052 1,182,433 1,172,967 1,126,423
Allowance for loan losses (15,796) (14,892) (14,563) (14,525) (15,167)
Premises and equipment 21,223 21,182 20,599 19,853 20,118
Cash value of life insurance 41,519 41,099 40,699 40,479 40,196
Goodwill 15,519 15,519 15,519 15,519 15,519
Intangible assets 4,373 4,719 5,065 5,408 5,070
Other assets 27,647 27,100 27,803 24,974 25,283
Total assets 1,786,856 1,720,643 1,655,612 1,627,506 1,574,546
Deposits
Noninterest-bearing demand deposits 346,456 332,887 312,738 311,275 298,319
Interest-bearing demand deposits 243,926 236,134 238,787 230,763 224,619
Savings deposits 449,893 466,062 484,660 474,414 474,345
Time certificates 398,024 365,094 362,564 332,381 294,858
Total deposits 1,438,299 1,400,177 1,398,749 1,348,833 1,292,141
Federal funds purchased & repurchase agreements 103,200 83,000 20,700 46,400 57,300
Reserve for unfunded commitments 1,674 1,671 1,632 1,532 1,049
Other liabilities 24,412 24,161 25,483 23,219 19,971
Other borrowings 31,711 27,628 28,176 28,152 27,159
Junior subordinated debt 41,238 41,238 41,238 41,238 41,238
Total liabilities 1,640,534 1,577,875 1,515,978 1,489,374 1,438,858
Total shareholders' equity 146,322 142,768 139,634 138,132 135,688
Accumulated other
comprehensive income (loss) (2,538) (1,468) (2,242) (352) 1,155
Average loans 1,284,977 1,209,061 1,167,039 1,142,483 1,098,442
Average interest-earning assets 1,574,392 1,511,668 1,464,028 1,433,641 1,399,342
Average total assets 1,744,015 1,679,653 1,628,827 1,592,464 1,552,743
Average deposits 1,421,055 1,407,586 1,363,064 1,343,273 1,275,599
Average total equity $146,660 $143,196 $141,264 $138,727 $133,628