8-K 1 tcbk200506pr.txt TCBK FORM 8-K 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 ------------------------ --------------- -------------------- (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 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 ------------------- (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 -------------------------------------- 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 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 ----------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, 2005 2005 2004 2004 2004 ----------------------------------------------------------------------------- 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 --------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, 2005 2005 2004 2004 2004 --------------------------------------------------------------------- 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