8-K 1 tcbk200503pr.txt TCBK FORM 8-K - 04/28/2005 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 ------------------------ --------------- -------------------- (State or other (Commission File No.) (I.R.S. Employer jurisdiction of Identification No.) incorporation or organization) 63 Constitution Drive, Chico, California 95973 -------------------------------------------------------------------------------- (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 --------------------------------------------------------- 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 ------------------- (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 -------------------------------------- Thomas J. Reddish, Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) INDEX TO EXHIBITS Exhibit No. Description ----------- -------------------------------------------- 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 ----------------------------------------------------------------------------- March 31, December 31, September 30, June 30, March 31, 2005 2004 2004 2004 2004 ----------------------------------------------------------------------------- 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 ------------------------------------------------------------------------- March 31, December 31, September 30, June 30, March 31, 2005 2004 2004 2004 2004 ------------------------------------------------------------------------- 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