-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CXBu4C/eSYHqQOAI84DcmHG43NIu0mjycMa92alogT3ki06V3yO3hztEFxcT3FCK ZW+vCMSjjREolH46KoZTcA== 0000356171-07-000032.txt : 20071025 0000356171-07-000032.hdr.sgml : 20071025 20071025170703 ACCESSION NUMBER: 0000356171-07-000032 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20070930 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20071025 DATE AS OF CHANGE: 20071025 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TRICO BANCSHARES / CENTRAL INDEX KEY: 0000356171 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 942792841 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-10661 FILM NUMBER: 071191472 BUSINESS ADDRESS: STREET 1: TRICO BANCSHARES STREET 2: 63 CONSTITUTION DRIVE CITY: CHICO STATE: CA ZIP: 95973 BUSINESS PHONE: 5308980300 MAIL ADDRESS: STREET 1: TRICO BANCSHARES STREET 2: 63 CONSTITUTION DRIVE CITY: CHICO STATE: CA ZIP: 95973 8-K 1 tcbk3q2007pr.txt 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 24, 2007 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 October 24, 2007 TriCo Bancshares announced its quarterly earnings for the period ended September 30, 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 - ------------------- (c) Exhibits 99.1 Press release dated October 24, 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: October 24, 2007 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 October 24, 2007 [GRAPHIC OMITTED] PRESS RELEASE Contact: Thomas J. Reddish For Immediate Release EVP & CFO (530) 898-0300 TRICO BANCSHARES ANNOUNCES QUARTERLY EARNINGS CHICO, Calif. - (October 24, 2007) - TriCo Bancshares (NASDAQ: TCBK), parent company of Tri Counties Bank, today announced quarterly earnings of $6,793,000 for the quarter ended September 30, 2007. This represents a decrease of $27,000 (0.4%) when compared with earnings of $6,820,000 for the quarter ended September 30, 2006. Diluted earnings per share for the quarter ended September 30, 2007 were $0.42 compared to $0.42 for the quarter ended September 30, 2006. Total assets of the Company increased $49,519,000 (2.6%) to $1,953,523,000 at September 30, 2007 from $1,904,004,000 at September 30, 2006. Total loans of the Company increased $27,917,000 (1.9%) to $1,535,076,000 at September 30, 2007 from $1,507,159,000 at September 30, 2006. Total deposits of the Company increased $6,968,000 (0.5%) to $1,532,142,000 at September 30, 2007 from $1,525,174,000 at September 30, 2006. Diluted earnings per share for the nine months ended September 30, 2007 and 2006 were $1.22 and $1.22, respectively, on earnings of $19,992,000 and $19,912,000, respectively. The decrease in earnings from the quarter ended September 30, 2006 was due to a $5,000 (0.02%) decrease in fully tax-equivalent (FTE) net interest income to $21,840,000, and a $465,000 (198%) increase in the provision for loan losses to $700,000 that were substantially offset by a $198,000 (3.0%) increase in noninterest income to $6,847,000 and a $274,000 (1.6%) decrease in noninterest expense to $16,752,000 for the quarter ended September 30, 2007. The $5,000 (0.02%) decrease in net interest income (FTE) was due to a 0.07% decrease in net interest margin (FTE) to 5.12% that was substantially offset by a $20,381,000 (1.2%) increase in average balances of interest-earning assets to $1,721,547,000. This decrease in net interest margin was mainly due to a 0.18% decrease in net interest spread as the average yield on interest-earning assets increased 0.14% while the average rate paid on interest-bearing liabilities increased 0.32% from the quarter ended September 30, 2006. The effect of the 0.18% decrease in net interest spread was partially offset by a 0.11% increase in the impact of net noninterest-bearing funds from the quarter ended September 30, 2006. The Company provided $700,000 for loan losses in the third quarter of 2007 versus $235,000 in the third quarter of 2006. During the third quarter of 2007, the Company recorded $560,000 of net loan charge-offs versus $135,000 of net loan charge-offs in the year earlier quarter. The $560,000 of net loan charge-offs during the third quarter of 2007 represented 0.15% of average loan balances on an annualized basis. At September 30, 2007, the combination of the Company's allowance for loan losses ($17,139,000) and reserve for unfunded commitments ($2,040,000) represented 255% of non-performing loans net of government agency guarantees ($7,507,000). The increase in noninterest income from the quarter ended September 30, 2006 was mainly due to a $136,000 (30.4%) increase in commissions on sale of nondeposit investment products to $583,000, a $116,000 (3.1%) increase in service charges on deposit accounts to $3,819,000, and an $89,000 (9.6%) increase in ATM fees and interchange to $1,016,000, that were partially offset by a $53,000 (20.1%) decrease in gain on sale of loans to $211,000. The increase in commissions on sale of nondeposit investment products was primarily due to improved market conditions and increased resources focused in this area. The increase in service charges on deposit accounts was primarily due to growth in customer count. The increase in ATM fees and interchange was due to growth in customer count and expansion of ATM network as part of new branch openings. The decrease in gain on sale of loans was due to a slowdown in residential mortgage refinance activity. The $274,000 decrease in noninterest expense for the third quarter of 2007 compared to the third quarter of 2006 was mainly due to a $301,000 (3.2%) decrease in salaries and benefits expense to $8,975,000. The decrease in salaries and benefits expense was mainly due to reduced commission and incentive expense that was partially offset by annual salary increases, and new employees at the Company's recently opened branches. The reduced commission and incentive expense was due to the Company's employees not earning certain bonus and incentive compensation which is tied to the Company satisfying internal targeted performance goals. The Company did not meet such goals for the third quarter of 2007 and thus did not incur the related compensation expense. Richard Smith, President and Chief Executive Officer commented, "We are pleased with our results for the quarter ended September 30, 2007, given the difficult market conditions in residential real estate and continued margin pressures that we have faced throughout 2007. During the third quarter, the nation's liquidity crisis and rate reductions by the Federal Reserve added to operating challenges. Despite this, TriCo's performance held up remarkably well. Most importantly, credit quality remains good and demonstrates our ability to manage through the residential real estate downturn. We have been minimally affected by the pronounced slowdown in the California residential real estate market. While we did achieve modest loan growth in the most recent quarter, we find ourselves having to fund this growth with higher paying deposits or other borrowings." On August 21, 2007, the Company announced the completion of its stock repurchase plan originally adopted on July 31, 2003 and amended on April 9, 2004. Under this plan, the Company repurchased a total of 500,000 shares of its common stock with the final 105,629 shares being repurchased during August 2007 at an average price of $20.97 per share. Also on August 21, 2007, the Board of Directors adopted a new plan to repurchase, as conditions warrant, up to 500,000 shares of the Company's common stock on the open market. As of September 30, 2007, the Company had not repurchased any shares of its common stock under its stock repurchase plan announced on August 21, 2007, which left 500,000 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 25 in-store branch locations in 23 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 64 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 ------------------------------------------------------------------------------ September 30, June 30, March 31, December 31, September 30, 2007 2007 2007 2006 2006 ------------------------------------------------------------------------------ Statement of Income Data Interest income $32,442 $31,986 $30,661 $31,545 $31,421 Interest expense 10,602 9,895 9,216 9,821 9,576 Net interest income 21,840 22,091 21,445 21,724 21,845 Provision for loan losses 700 500 482 - 235 Noninterest income: Service charges and fees 5,218 5,375 5,061 4,940 5,056 Other income 1,629 1,654 1,539 1,687 1,593 Total noninterest income 6,847 7,029 6,600 6,627 6,649 Noninterest expense: Salaries and benefits 8,975 9,619 9,742 9,405 9,276 Intangible amortization 122 122 123 350 350 Provision for losses - unfunded commitments - 74 117 - - Other expense 7,655 7,628 6,978 7,247 7,400 Total noninterest expense 16,752 17,443 16,960 17,002 17,026 Income before taxes 11,235 11,177 10,603 11,349 11,233 Net income $6,793 $6,755 $6,444 $6,918 $6,820 Share Data Basic earnings per share $0.43 $0.42 $0.41 $0.44 $0.43 Diluted earnings per share 0.42 0.41 0.39 0.42 0.42 Book value per common share 11.50 11.22 10.96 10.69 10.41 Tangible book value per common share $10.44 $10.16 $9.89 $9.60 $9.22 Shares outstanding 15,891,300 15,917,291 15,910,291 15,857,207 15,857,107 Weighted average shares 15,889,061 15,916,313 15,878,929 15,857,166 15,855,933 Weighted average diluted shares 16,310,631 16,463,389 16,415,845 16,396,320 16,365,858 Credit Quality Non-performing loans, net of government agency guarantees $7,507 $13,360 $5,991 $4,512 $4,523 Other real estate owned 187 187 187 - - Loans charged-off 843 751 739 498 368 Loans recovered $283 $355 $238 $419 $233 Allowance for losses to total loans(1) 1.25% 1.26% 1.26% 1.24% 1.25% Allowance for losses to NPLs(1) 255% 143% 315% 416% 417% Allowance for losses to NPAs(1) 249% 141% 305% 416% 417% Selected Financial Ratios Return on average total assets 1.44% 1.44% 1.38% 1.46% 1.45% Return on average equity 14.92% 15.11% 14.79% 16.23% 16.64% Average yield on loans 7.93% 7.93% 7.63% 7.81% 7.82% Average yield on interest-earning assets 7.58% 7.58% 7.30% 7.43% 7.44% Average rate on interest-bearing liabilities 3.18% 3.02% 2.85% 2.97% 2.86% Net interest margin (fully tax-equivalent) 5.12% 5.25% 5.12% 5.13% 5.19% Total risk based capital ratio 11.7% 11.8% 11.8% 11.3% 11.1% Tier 1 Capital ratio 10.7% 10.8% 10.8% 10.3% 10.1% (1) Allowance for losses includes allowance for loan losses and reserve for unfunded commitments.
TRICO BANCSHARES - CONSOLIDATED FINANCIAL DATA (Unaudited. Dollars in thousands) Three months ended ------------------------------------------------------------------------------- September 30, June 30, March 31, December 31, September 30, 2007 2007 2007 2006 2006 ------------------------------------------------------------------------------- Balance Sheet Data Cash and due from banks $70,791 $93,636 $75,263 $102,220 $78,281 Federal funds sold 488 1,715 - 794 1,387 Securities, available-for-sale 239,242 175,891 188,478 198,361 209,886 Federal Home Loan Bank Stock 8,652 8,543 8,442 8,320 8,206 Loans Commercial loans 165,559 159,822 142,083 153,105 153,705 Consumer loans 542,875 526,575 516,550 525,513 527,185 Real estate mortgage loans 697,670 687,744 687,088 679,661 661,962 Real estate construction loans 128,972 133,487 149,893 151,600 164,307 Total loans, gross 1,535,076 1,507,628 1,495,614 1,509,879 1,507,159 Allowance for loan losses (17,139) (16,999) (16,895) (16,914) (16,993) Premises and equipment 20,804 20,891 20,924 21,830 21,556 Cash value of life insurance 44,751 44,346 43,941 43,536 42,991 Goodwill 15,519 15,519 15,519 15,519 15,519 Intangible assets 1,298 1,421 1,543 1,666 3,361 Other assets 34,041 34,436 33,492 34,755 32,651 Total assets 1,953,523 1,887,027 1,866,321 1,919,966 1,904,004 Deposits Noninterest-bearing demand deposits 345,467 366,321 364,401 420,025 357,754 Interest-bearing demand deposits 214,726 226,591 235,497 230,671 229,143 Savings deposits 386,866 387,422 381,069 374,605 369,933 Time certificates 585,083 530,545 555,882 573,848 568,344 Total deposits 1,532,142 1,510,879 1,536,849 1,599,149 1,525,174 Federal funds purchased 66,000 80,500 38,000 38,000 106,500 Reserve for unfunded commitments 2,040 2,040 1,966 1,849 1,849 Other liabilities 29,382 28,878 32,524 30,383 28,254 Other borrowings 99,996 44,892 41,347 39,911 35,848 Junior subordinated debt 41,238 41,238 41,238 41,238 41,238 Total liabilities 1,770,798 1,708,427 1,691,924 1,750,530 1,738,863 Total shareholders' equity 182,725 178,600 174,397 169,436 165,141 Accumulated other comprehensive loss (3,628) (4,779) (3,988) (4,521) (3,607) Average loans 1,517,419 1,506,913 1,490,055 1,498,040 1,477,551 Average interest-earning assets 1,721,547 1,698,620 1,692,574 1,711,743 1,701,166 Average total assets 1,891,992 1,871,260 1,865,448 1,890,765 1,880,029 Average deposits 1,499,793 1,500,733 1,534,473 1,550,979 1,501,630 Average total equity $182,080 $178,836 $174,262 $170,518 $163,919
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