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 28, 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 April 28, 2005 TriCo Bancshares announced its quarterly earnings for the
period ended March 31, 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 April 28, 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: April 29, 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 April 28, 2005
PRESS RELEASE Contact: Thomas J. Reddish
For Immediate Release Executive Vice President & CFO
(530) 898-0300
TRICO BANCSHARES ANNOUNCES QUARTERLY EARNINGS
CHICO, Calif. - (April 28, 2005) - TriCo Bancshares (NASDAQ: TCBK), parent
company of Tri Counties Bank, today announced quarterly earnings of $5,239,000
for the quarter ended March 31, 2005. This represents a 9.7% increase when
compared with earnings of $4,777,000 for the quarter ended March 31, 2004.
Diluted earnings per share for the quarter ended March 31, 2005 increased 10.3%
to $0.32 from $0.29 for the quarter ended March 31, 2004. Total assets of the
Company increased $204,249,000 (14.1%) to $1,655,612,000 at March 31, 2005
versus $1,451,363,000 at March 31, 2004. Total loans of the Company increased
$188,368,000 (19.0%) to $1,182,433,000 at March 31, 2005 versus $994,065,000 at
March 31, 2004. Total deposits of the Company increased $158,810,000 (12.8%) to
$1,398,749,000 at March 31, 2005 versus $1,239,939,000 at March 31, 2004.
Richard Smith, President and Chief Executive Officer commented, "We are pleased
with the performance of our company during the quarter ended March 31, 2005.
Loan growth during this most recent quarter was good and consistent with the
pattern we have seen during the first quarter of recent years. The credit
quality of our loan portfolio remained excellent and continued to improve during
this most recent quarter. Deposit growth of nearly thirteen 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 February 2005
opening of our full service branch in the Raley's supermarket at 765 South
Highway 65 in Lincoln, California."
The improvement in results from the year-ago quarter was due to a $1,609,000
(9.4%) increase in fully tax-equivalent (FTE) net interest income to
$18,756,000, and a $513,000 (83.7%) decrease in provision for loan losses to
$100,000. These contributing factors were partially offset by a $428,000 (7.4%)
decrease in noninterest income to $5,327,000 and a $730,000 (5.1%) increase in
noninterest expense to $15,113,000 for the quarter ended March 31, 2005.
The $1,609,000 increase in net interest income (FTE) was due to increased
average balances of earning assets (up $182,996,000 or 14.3% to $1,464,028,000)
offset by a 23 basis point decrease in net interest margin (FTE) to 5.12% in the
quarter ended March 31, 2005 compared to 5.35% in the year-ago quarter. The
decrease in net interest margin is mainly due to a 21 basis point decrease in
average yield on loans from 6.90% in the quarter ended March 31, 2004 to 6.69%
in the quarter ended March 31, 2005. While average loan balances increased
$196,246,000 (20.2%) from $970,793,000 in the quarter ended March 31, 2004 to
$1,167,039,000 in the quarter ended March 31, 2005, most of this loan growth
occurred in variable rate home equity and first mortgage loans, and short-term
fixed rate auto loans. While these categories of loans have favorable yield
performance should short-term interest rates continue to rise, new loans
originated in these categories over the last twelve months had average yields
less than the average yield of the existing loan portfolio.
The $513,000 decrease in provision for loan losses was due to the continued
excellent and improving credit quality of the Company's loan portfolio. Net loan
charge-offs during the quarter were $62,000. Nonperforming loans, net of
government agency guarantees, were $4,072,000 at March 31, 2005 compared to
$4,906,000 and $5,265,000 at December 31, 2004 and March 31, 2004, respectively.
The Company's allowance for losses, which consists of the allowance for loan
losses and the reserve for unfunded commitments, was $16,195,000 or 1.37% of
total loans outstanding and 398% of nonperforming loans.
The $428,000 decrease in noninterest income from the year-ago quarter was mainly
due to a $333,000 decrease in gain on sale loans to $292,000, and a $212,000
reduction in the increase in cash value of life insurance to $220,000 in the
quarter ended March 31, 2005. The decrease in gain on sale of loans was due to
the continued slowdown in the mortgage refinance market, while the reduced
increase in cash value of life insurance was due to lower earnings rates on the
underlying insurance policies.
The $730,000 increase in noninterest expense in the quarter ended March 31, 2005
was due to a $202,000 increase in salaries and benefits expense to $8,369,000,
and a $528,000 increase in other noninterest expense to $6,744,000 from the
year-ago quarter. The increase in salaries and benefits expense was mainly due
to annual salary increases, and new employees at the Company's recently opened
branches in Turlock (April 2004), Woodland (November 2004), and Lincoln
(February 2005). Other categories of noninterest expense such as equipment,
occupancy, ATM network charges, and other were also up, in part, due to these
newly opened branches. Advertising and marketing expense was up $151,000 (79%)
to $342,000 in the quarter ended March 31, 2005 compared to the year-ago
quarter.
As of March 31, 2005, the Company had repurchased 236,400 shares of its common
stock under its stock repurchase plan announced on July 31, 2003 and amended on
April 9, 2004, which left 263,600 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 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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March 31, December 31, September 30, June 30, March 31,
2005 2004 2004 2004 2004
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Statement of Income Data
Interest income $ 22,636 $ 22,441 $ 21,951 $ 20,628 $ 19,912
Interest expense 4,122 3,768 3,494 3,087 3,014
Net interest income 18,514 18,673 18,457 17,541 16,898
Provision (benefit) for loan losses 100 (183) 1,166 1,305 613
Noninterest income:
Service charges and fees 4,062 4,266 4,434 4,910 4,081
Other income 1,265 1,470 1,927 2,032 1,672
Total noninterest income 5,327 5,736 6,361 6,942 5,755
Noninterest expense:
Salaries and benefits 8,369 8,265 8,319 8,440 8,167
Intangible amortization 343 343 343 343 331
Provision for losses -
unfunded commitments 100 483 134 (5) 37
Other expense 6,301 6,724 6,427 6,629 5,848
Total noninterest expense 15,113 15,815 15,223 15,407 14,383
Income before taxes 8,628 8,777 8,429 7,771 7,657
Net income $ 5,239 $ 5,355 $ 5,203 $ 4,847 $ 4,777
Share Data(1)
Basic earnings per share $ 0.33 $ 0.34 $ 0.33 $ 0.31 $ 0.31
Diluted earnings per share 0.32 0.33 0.32 0.30 0.29
Book value per common share 8.87 8.79 8.64 8.20 8.28
Tangible book value per common share $ 7.57 $ 7.45 $ 7.33 $ 6.87 $ 6.92
Shares outstanding 15,733,517 15,723,317 15,697,817 15,639,897 15,635,522
Weighted average shares 15,729,725 15,712,605 15,672,300 15,639,556 15,616,540
Weighted average diluted shares 16,366,705 16,396,447 16,247,422 16,215,160 16,212,845
Credit Quality
Non-performing loans, net of
government agency guarantees $ 4,072 $ 4,906 $ 4,931 $ 3,886 $ 5,265
Other real estate owned - - - 628 924
Loans charged-off 295 579 687 178 188
Loans recovered $ 233 $ 120 $ 74 $ 110 $ 62
Allowance for losses to total loans(2) 1.37% 1.37% 1.44% 1.44% 1.44%
Allowance for losses to NPLs(2) 398% 296% 329% 400% 272%
Allowance for losses to NPAs(2) 398% 296% 329% 344% 231%
Selected Financial Ratios
Return on average total assets 1.29% 1.35% 1.34% 1.29% 1.33%
Return on average equity 14.83% 15.44% 15.57% 14.97% 14.80%
Average yield on loans 6.69% 6.82% 6.87% 6.82% 6.90%
Average yield on earning assets 6.25% 6.33% 6.35% 6.18% 6.30%
Average rate on earning liabilities 1.43% 1.35% 1.25% 1.14% 1.18%
Net interest margin (fully tax-equivalent) 5.12% 5.28% 5.35% 5.27% 5.35%
Total risk based capital ratio 11.9% 11.9% 12.4% 12.4% 11.5%
Tier 1 Capital ratio 10.8% 10.7% 11.0% 10.9% 10.3%
(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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March 31, December 31, September 30, June 30, March 31,
2005 2004 2004 2004 2004
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Balance Sheet Data
Cash and due from banks $ 77,365 $ 70,037 $ 64,318 $ 65,512 $ 55,568
Fed funds sold 181 - - - -
Securities, available-for-sale 293,730 286,013 286,067 302,341 307,647
Federal Home Loan Bank Stock 6,781 6,781 6,719 6,642 4,830
Loans
Commercial loans 125,354 140,332 151,998 146,262 131,759
Consumer loans 425,437 410,198 384,560 357,901 334,221
Real estate mortgage loans 556,059 544,373 527,808 518,696 465,429
Real estate construction loans 75,583 78,064 62,057 55,605 62,656
Total loans, gross 1,182,433 1,172,967 1,126,423 1,078,464 994,065
Allowance for loan losses (14,563) (14,525) (15,167) (14,614) (13,377)
Premises and equipment 20,599 19,853 20,118 18,996 19,288
Cash value of life insurance 40,699 40,479 40,196 39,844 39,412
Goodwill 15,519 15,519 15,519 15,519 15,519
Intangible assets 5,065 5,408 5,070 5,412 5,755
Other assets 27,803 24,974 25,283 27,972 22,656
Total assets 1,655,612 1,627,506 1,574,546 1,546,088 1,451,363
Deposits
Noninterest bearing demand deposits 312,738 311,275 298,319 282,292 260,299
Interest bearing demand deposits 238,787 230,763 224,619 224,552 222,986
Savings deposits 484,660 474,414 474,345 476,798 488,915
Time certificates 362,564 332,381 294,858 283,710 267,739
Total deposits 1,398,749 1,348,833 1,292,141 1,267,352 1,239,939
Fed funds purchased & repurchase agreements 20,700 46,400 57,300 66,000 16,300
Reserve for unfunded commitments 1,632 1,532 1,049 915 920
Other liabilities 25,483 23,219 19,971 19,397 21,194
Other borrowings 28,176 28,152 27,159 22,866 22,877
Junior subordinated debt 41,238 41,238 41,238 41,238 20,619
Total liabilities 1,515,978 1,489,374 1,438,858 1,417,768 1,321,849
Total shareholders' equity 139,634 138,132 135,688 128,320 129,514
Accumulated other
comprehensive income (loss) (2,242) (352) 1,155 (1,984) 2,426
Average loans 1,167,039 1,142,483 1,098,442 1,029,425 970,793
Average interest earning assets 1,464,028 1,433,641 1,399,342 1,351,774 1,281,032
Average total assets 1,628,827 1,592,464 1,552,743 1,505,261 1,440,953
Average deposits 1,363,064 1,343,273 1,275,599 1,252,472 1,231,704
Average total equity $ 141,264 $ 138,727 $ 133,628 $ 129,481 $ 129,133