-----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, V4r7iI02aZa23Ru5MAqDeSqLEIr957ezsf2ouuj32GwzOT9Duup53orVoAfER/i3 DwMOo8ah6tGESXyK7rJdfg== 0000912057-96-009797.txt : 19960517 0000912057-96-009797.hdr.sgml : 19960517 ACCESSION NUMBER: 0000912057-96-009797 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960515 SROS: NASD 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: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-10661 FILM NUMBER: 96565658 BUSINESS ADDRESS: STREET 1: TRI COUNTIES BANK ADMINISTRATION STREET 2: 40 PHILADELPHIA DRIVE CITY: CHICO STATE: CA ZIP: 95973 BUSINESS PHONE: 9168980300 MAIL ADDRESS: STREET 1: TRI COUNTIES BANK ADMINISTRATION STREET 2: 40 PHILADELPHIA DRIVE CITY: CHICO STATE: CA ZIP: 95973 10-Q 1 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q Quarterly Report Under Section 13 or 15 (d) of the Securities Exchange Act of 1934 For Quarter Ended March 31, 1996 Commission file number 0-10661 -------------- ------- TRICO BANCSHARES ---------------- (Exact name of registrant as specified in its charter) California 94-2792841 ---------- ---------- (State or other jurisdiction (I.R.S. Employer incorporation or organization) Identification No.) 15 Independence Circle, Chico, California 95926 ----------------------------------------------------- (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code 916/898-0300 ------------ ------------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ----- ----- APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Title of Class: Common stock, no par value Outstanding shares as of May 6, 1996: 4,460,543 TRICO BANCSHARES CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands)
March 31, December 31, --------- ------------ 1996 1995 ---- ---- Assets: Cash and due from banks $ 28,761 $ 39,673 Federal funds sold 8,200 25,600 Securities held-to-maturity (approximate fair value $109,722 and $116,576) 112,874 116,865 Securities available-for-sale, net of unrealized gain(loss) of $(742) and $(236) 72,198 76,246 Loans, net of allowance for loan losses of $(5,706) and $(5,580) 323,869 313,186 Premises and equipment, net 13,785 13,189 Investment in real estate properties 1,173 1,173 Other real estate owned 646 631 Accrued interest receivable 4,023 4,609 Other assets 13,077 12,382 ---------- ---------- Total assets $ 578,606 $ 603,554 ========== ========== Liabilities: Deposits Noninterest-bearing demand $ 76,226 $ 90,308 Interest-bearing demand 83,446 84,314 Savings 166,490 161,479 Time certificates 164,846 180,092 ---------- ---------- Total deposits 491,008 516,193 Accrued interest payable and other liabilities 9,066 7,856 Long term borrowings 24,289 26,292 ---------- ---------- Total liabilities 524,363 550,341 Shareholders' equity: Common stock 44,408 44,315 Retained earnings 10,697 9,548 Unrealized loss on securities available- for-sale (862) (650) ---------- ---------- Total shareholders' equity 54,243 53,213 ---------- ---------- Total liabilities and shareholders' equity $ 578,606 $ 603,554 ========== ==========
2
TRICO BANCSHARES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) (in thousands except earnings per common share) For the three months -------------------- ended March 31, --------------- 1996 1995 ---- ---- Interest income: Interest and fees on loans $ 8,563 $ 8,037 Interest on investment securities-taxable 2,698 3,130 Interest on investment - securities-tax exempt 33 44 Interest on federal funds sold 311 90 --------- --------- Total interest income 11,605 11,301 --------- --------- Interest expense: Interest on deposits 4,153 3,750 Interest on federal funds purchased - 10 Interest on other borrowings 382 613 --------- --------- Total interest expense 4,535 4,373 --------- --------- Net interest income 7,070 6,928 Provision for loan losses 40 40 --------- --------- Net interest income after provision for loan losses 7,030 6,888 Noninterest income: Service charges and fees 1,119 1,021 Other income 347 442 Securities gains (losses), net - (31) --------- --------- Total noninterest income 1,466 1,432 --------- --------- Noninterest expenses: Salaries and related expenses 2,959 2,810 Other, net 2,546 2,746 --------- --------- Total noninterest expenses 5,505 5,556 --------- --------- Net income before income taxes 2,991 2,764 Income taxes 1,247 1,134 --------- --------- Net income 1,744 1,630 Preferred stock dividends - 105 --------- --------- Net income available to common shareholders 1,744 1,525 Primary earnings per common share $ 0.38 $ 0.33 ========= ========= Fully diluted earnings per common share $ 0.37 $ 0.33 ========= =========
3 TRICO BANCSHARES CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) (in thousands, except number of shares)
Common stock ------------------------ Unrealized Number Retained loss on of shares Amount earnings securities Total --------- -------- -------- ---------- --------- Balance, December 31, 1995 4,464,828 $ 44,315 $ 9,548 $ (650) $ 53,213 Exercise common stock options 4,000 41 $ 41 Common stock cash dividends (595) $ (595) Change in unrealized loss on securities (212) $ (212) Stock option amortization 52 $ 52 Net income, March 31, 1996 1,744 $ 1,744 --------- --------- --------- --------- --------- Balance, March 31, 1996 4,468,828 $ 44,408 $ 10,697 $ (862) $ 54,243 ========= ========= ========= ========= =========
4
TRICO BANCSHARES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) For the three months ended March 31, -------------------------- 1996 1995 ----------- ----------- Operating activities: Net income $ 1,744 $ 1,630 Adjustments to reconcile net income to net cash provided by operating activities: Provision for loan losses 40 40 Depreciation and amortization 415 386 Amortization of investment security discounts 38 39 Deferred income taxes (250) 279 Investment security (gains) losses, net - 31 (Gain) loss on sale of OREO, net 8 (99) (Gain) loss on sale of loans, net (2) (12) Origination of loans held for sale (7,645) (2,512) Proceeds from loan sales 1,220 2,155 Amortization of stock options 52 52 (Increase) decrease in interest receivable 586 599 Increase (decrease) in interest payable 679 1,000 (Increase) decrease in other assets and liabilities 189 212 ----------- ----------- Net cash provided by operating activities (2,926) 3,800 Investing activities: Proceeds from maturities of securities held-to-maturity 6,626 2,096 Purchases of securities held-to-maturity (2,520) - Proceeds from maturities of securities available-for-sale 5,555 4,181 Proceeds from sales of securities available-for-sale - 1,972 Purchases of securities available-for-sale (2,035) (3,042) Net (increase) decrease in loans (4,417) 10,651 Purchases of premises and equipment (941) (423) Proceeds from the sale of OREO 98 522 ----------- ----------- Net cash used by investing activities 2,366 15,957 Financing activities: Net increase (decrease) in deposits (25,185) (1,468) Repayment of repurchase agreements - (30,457) Payments of principal on long-term debt agreements (2,003) (2,011) Cash dividends - Preferred - (105) Cash dividends - Common (595) (352) Sale of Common Stock 31 52 ----------- ----------- Net cash provided by financing activities (27,752) (34,341) ----------- ----------- Increase (decrease) in cash and cash equivalents (28,312) (14,584) Cash and cash equivalents at beginning of year 65,273 39,709 ----------- ----------- Cash and cash equivalents at end of period $ 36,961 $ 25,125 =========== =========== Supplemental information: Cash paid for taxes $ 362 $ 315 Cash paid for interest expense $ 3,856 $ 3,373
5 Item 1. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE A - BASIS OF PRESENTATION The accompanying condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and in Management's opinion, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of results for such interim periods. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to SEC rules or regulations; however, the Company believes that the disclosures made are adequate to make the information presented not misleading. The interim results for the three months ended March 31, 1996 and 1995 are not necessarily indicative of results for the full year. It is suggested that these financial statements be read in conjunction with the financial statements and the notes included in the Company's Annual Report for the year ended December 31, 1995. NOTE B - MORTGAGE SERVICING As of January 1, 1996, the Company adopted FASB Statement of Financial Accounting Standards No 122, ACCOUNTING FOR MORTGAGE SERVICING RIGHTS, (SFAS 122). SFAS 122 requires a mortgage banking enterprise to recognize the rights to service mortgage loans for others as a separate asset. SFAS 122 also requires that a mortgage banking enterprise assess its capitalized mortgage servicing rights for impairment based on the fair value of those rights and recognize impairment through a valuation allowance. The adoption of SFAS 122 did not have a material impact on the Company's financial position or results of operations for the three months ended March 31, 1996. 6 Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS As TriCo Bancshares (the "Company") has not commenced any business operations independent of Tri Counties Bank (the "Bank"), the following discussion pertains primarily to the Bank. Average balances, including such balances used in calculating certain financial ratios, are generally comprised of average daily balances for the Company. Unless otherwise stated, interest income and net interest income are presented on a tax equivalent basis. OVERVIEW The Company earned $1,744,000 for the first quarter ended March 31, 1996 versus $1,630,000 in the first quarter of 1995. Fully diluted earnings per share were $0.37 versus $0.33. The earnings per share results have been adjusted for a five for four (5/4) stock split effected as a stock dividend in September 1995. First quarter pretax earnings grew 8.2% or $227,000 over the same period in 1995. The improved operating results reflected increases in net interest income and noninterest income coupled with a decrease in noninterest expenses. Over half of the increase was provided by a $142,000 increase in net interest income (not adjusted for tax equivalent basis). An interest income increase of $304,000 was mostly attributable to changes in the mix of average earning assets as the total of these assets in the first quarter of 1996 was relatively unchanged from the first quarter of 1995. On a period over period basis, loans which yield the highest rates increased $19.1 million or 6.4% and Federal funds sold increased $17.2 million or 264%. These assets absorbed the $36.1 million or 15.7% decrease in the outstanding balance of the securities portfolio. Additionally, rate increases received on earning assets accounted for $51,000 of the $304,000 total interest income increase. Interest expense was also up $162,000. The combination of a $29,600,000 (20.2%) increase in time deposit average balances and a 42 basis point increase in the average rate paid resulted in an increase of $558,000 in interest expense. This increase for time deposits was offset in part by lower balances in savings accounts and bank borrowings. The net interest margin was 5.29% for the first quarter of 1996 versus 5.19% in the prior year. Noninterest income is comprised of "service charges and fees" and "other income". Service charge and fee income increased 9.6% to $1,119,000 in the first quarter of 1996 versus first quarter of 1995 results. The increase is due mainly to an increase in account volumes as basic fee rates have generally not changed. Other income decreased from $442,000 in 1995 to $347,000 in 1996. In the first quarter of 1995, income of $116,000 was derived from the operations and sale of OREO properties. In 1996 OREO properties had a $7,000 loss. Overall, noninterest income increased $34,000 for the quarter. 7 Noninterest expenses decreased $51,000 to $5,505,000 in the first quarter 1996 versus first quarter 1995. Due to the temporary elimination of FDIC insurance premiums for the year 1996, this expense decreased $287,000 from the 1995 level in the first quarter. This cost savings was offset in part by a $149,000 or 5.3% increase in salary and benefit expenses, which reflects increased costs for additional employees at two new in-store branches, two loan production offices and normal salary adjustments. The balance of the cost savings from the elimination of FDIC insurance premiums was offset by increases in various other expenses. Assets of the Company totaled $578,606,000 at March 31, 1996 which was a decrease of $24,948,000 from 1995 ending balances. Changes in assets from year end balances included: an increase in loans of $10,809,000 to $329,575,000; a decrease in securities of $8,039,000 to $185,072,000; and a decrease in cash and near cash items of $28,312,000 to $36,961,000. Deposit balances at March 31, 1996 were down $25,285,000 (4.9%) from 1995 year end balances. Approximately $14,000,000 of the change was related to noninterest-bearing demand deposits which had increased substantially at year end due to seasonality of agricultural payments and merchant trade. Time certificates of deposit balances were down $15,246,000 (8.5%) as the Bank lowered rates paid on these instruments and the Bank opted not to renew a State of California certificate for $9,000,000. For the first quarter of 1996, the Company had an annualized return on assets of 1.18% and a return on equity of 12.9% versus 1.12% and 13.2% in 1995. TriCo Bancshares ended the quarter with a leverage ratio of 9.5% (based on ending assets), a Tier 1 capital ratio of 13.9% and a total risk-based capital ratio of 15.2%. The following table provides a summary of the major elements of income and expense for the first quarter of 1996 compared with the first quarter of 1995. 8
TRICO BANCSHARES CONDENSED COMPARATIVE INCOME STATEMENT (in thousands, except earnings per common share) Three months ended March 31, 1996 1995 Percentage ---- ---- Change (in thousands, except increase) earnings per share) (decrease) Interest income $ 11,629 $ 11,333 2.6% Interest expense 4,535 4,373 3.7% ----------- ----------- Net interest income 7,094 6,960 1.9% Provision for loan losses 40 40 0.0% ----------- ----------- Net interest income after 7,054 6,920 1.9% provision for loan losses Noninterest income 1,466 1,432 2.4% Noninterest expenses 5,505 5,556 -0.9% ----------- ----------- Net income before income taxes 3,015 2,796 7.8% Income taxes 1,247 1,134 10.0% Tax equivalent adjustment(1) 24 32 -25.0% ----------- ----------- Net income 1,744 1,630 7.0% =========== =========== Preferred stock dividends 0 (105) -100.0% Net income available to 1,744 1,525 14.4% common shareholders' Primary earnings per common share 0.38 0.33 14.9% (1) Interest on tax-free securities is reported on a tax equivalent basis of 1.73 for March 31, 1996 and 1995.
9 NET INTEREST INCOME / NET INTEREST MARGIN Net interest income represents the excess of interest and fees earned on interest-earning assets (loans, securities and Federal Funds sold) over the interest paid on deposits and borrowed funds. Net interest margin is net interest income expressed as a percentage of average earning assets. Net interest income comprises the major portion of the Bank's income. For the three months ended March 31, 1996, interest income increased slightly by $296,000 or 2.6% over the same period in 1995. The average balances of total earning assets was essentially the same during the two periods. However, average loans outstanding increased $19,140,000 to $319,601,000 and Federal funds sold increased $17,164,000 to $23,648,000. These two volume increases accounted for additional interest income of $512,000 and $238,000 respectively. These increases were offset in part by a period over period decrease in average balances of securities of $36,146,000 or 15.8% which resulted in a reduction in interest income on securities of $505,000. (See additional discussion in Securities heading). These changes in the mix of earning assets accounted for the preponderance of the change in interest income as rate changes resulted in additional income of $51,000 or 17.2% of the increase in interest income. For the first quarter of 1996, interest expense increased by $162,000 or 3.7% over the year earlier period. Average balances of interest bearing liabilities decreased $1,512,000 or just 0.3% from the previous year, but the mix within the interest bearing liabilities changed. The change in the mix coupled with higher rates on certificates of deposit and long term debt resulted in a fifteen basis point increase in overall rates paid on interest bearing liabilities. The combined effect of the increase in both interest income and interest expense for the first quarter of 1996 versus 1995 resulted in a small increase of $134,000 or 1.9% in net interest income. Net interest margin was up 10 basis points from 5.19% to 5.29%. However, net interest margin was down from 5.37% in the fourth quarter of 1995. Since loan balances increased toward the end of the quarter, if interest rates remain stable, Management would expect some improvement in the net interest rate margin in the next quarter. The following two tables provide summaries of the components of the interest income, interest expense and net interest margins on earning assets for the quarter ended March 31, 1996 versus the same period in 1995. 10
TRICO BANCSHARES ANALYSIS OF CHANGE IN NET INTEREST MARGIN ON EARNING ASSETS (in thousands) Three Months Ended ------------------ March 31, 1996 March 31, 1995 -------------- -------------- Average Income/ Yield/ Average Income/ Yield/ Balance(1) Expense Rate Balance(1) Expense Rate Assets Earning assets Loan (2)(3) $ 319,601 $ 8,563 10.72% $ 300,461 $ 8,037 10.70% Securities 193,194 2,755 5.70% 229,340 3,206 5.59% Federal funds sold 23,648 311 5.26% 6,484 90 5.55% --------- --------- --------- --------- Total earning assets 536,443 11,629 8.67% 536,285 11,333 8.45% --------- --------- Cash and due from bank 29,661 30,939 Premises and equipment 13,337 13,255 Other assets,net 17,768 9,143 Less: allowance for loan losses (5,593) (5,649) --------- --------- Total $ 591,616 $ 583,973 ========= ========= Liabilities and shareholders' equity Interest-bearing Demand deposits $ 84,662 476 2.25% $ 81,466 494 2.43% Savings deposits 166,043 1,266 3.05% 183,652 1,403 3.06% Time deposits 175,474 2,411 5.50% 145,912 1,853 5.08% Federal funds purchased - - 642 10 6.23% Short-term debt - - 23,815 362 6.08% Long-term debt 26,054 382 5.86% 18,258 251 5.50% --------- --------- --------- --------- Total interest-bearing liabilities 452,233 4,535 4.01% 453,745 4,373 3.86% --------- --------- Noninterest-bearing deposits 76,775 73,892 Other liabilities 8,598 6,847 Shareholders' equity 54,010 49,489 --------- --------- Total liabilities and shareholders' equity $ 591,616 $ 583,973 ========= ========= Net interest rate spread(5) 4.66% 4.60% ========= Net interest income/net $ 7,094 $ 6,960 ========= ========= interest margin(6) 5.29% 5.19% ========= ========= (1)Average balances are computed principally on the basis of daily balances. (2)Nonaccrual loans are included. (3)Interest income on loans includes fees on loans of $407,000 in 1996 and $382,000 in 1995. (4)Interest income is stated on a tax equivalent basis of 1.73 at March 31, 1996 and 1995. (5)Net interest rate spread represents the average yield earned on interest- earning assets less the average rate paid on interest-bearing liabilities. (6)Net interest margin is computed by dividing net interest income by total average earning assets.
11
TRICO BANCSHARES ANALYSIS OF VOLUME AND RATE CHANGES ON NET INTEREST INCOME AND EXPENSE (in thousand) For the three months ended March 31, ------------------------------------ 1996 over 1995 -------------- Yield/ Volume Rate(4) Total --------- --------- --------- Increase (decrease) in interest income: Loans (1)(2) $ 512 $ 14 $ 526 Investment securities(3) (505) 54 (451) Federal funds sold 238 (17) 221 --------- --------- --------- Total 245 51 296 --------- --------- --------- Increase (decrease) in interest expense: Demand deposits (interest-bearing) 19 (37) (18) Savings deposits (135) (2) (137) Time deposits 375 183 558 Federal funds purchased (10) 0 (10) Short-term debt (362) 0 (362) Long-term debt 107 24 131 --------- --------- --------- Total (6) 168 162 --------- --------- --------- Increase (decrease) in net interest income $ 251 $ (117) $ 134 ========= ========= ========= (1)Nonaccrual loans are included. (2)Interest income on loans includes fee income on loans of $407,000 in 1996 and $382,000 in 1995. (3)Interest income is stated on a tax equivalent basis of 1.73 for March 31, 1996 and 1995. (4)The rate/volume variance has been included in the rate variance.
12 PROVISION FOR LOAN LOSSES In the first quarters of 1996 and 1995, the Bank made provisions for loan losses of $40,000. In 1996 the first quarter loan recoveries exceeded the loans charged off by $86,000. Thus, the allowance for loan losses increased $126,000. Since the loan balances were also up during the quarter, the allowance for loan losses as a percentage of total loans decreased slightly from 1.75% at year end to 1.73%. NONINTEREST INCOME Total noninterest income for the first quarter of 1996 increased $34,000 or 2.4% from the same period in 1995. Service charges and fees on deposit accounts increased 9.6% to $1,119,000 in the first quarter versus year ago results. This change is due mainly to an increase in account volumes as basic fee rates have generally not changed. Other income was down from $442,000 in 1995 to $347,000 in 1996. In the first quarter of 1995 income of $116,000 was derived from the operations and sale of OREO properties. In 1996 OREO properties had a $7,000 operating loss. NONINTEREST EXPENSE Noninterest expense is comprise of operating expenses of the Company and the Bank, plus the total noninterest (income) expenses of the Bank's real estate development subsidiary. These expenses decreased $51,000 or 0.9% in the first quarter of 1996 versus the same period last year. Salaries and benefits expense were up $149,000 or 5.3%. Most of the salary increase was due to normal salary progressions, new staffing at two supermarket branches and two new loan production offices. Other expenses were down $200,000 or 7.3%. Due to the temporary elimination of FDIC insurance premiums for the year 1996, the Bank realized a savings of $287,000 over the first quarter 1995 level. Various other expense items accounted for a net increase of $87,000 in 1996. The Bank is investing more than $1.8 million in 1996 to upgrade and enhance its computer and systems technology in 1996. This is an ongoing process to increase efficiency and deliver products which can compete effectively with the major California banks in the Bank's market area. These costs will be capitalized and depreciated over the useful lives of the systems. The impact in the first quarter of 1996 was not material. PROVISION FOR INCOME TAXES The effective tax rate for the three months ended March 31, 1996 is 41.7%. This rate equals the combined California and Federal statutory rates. The actual rate 13 equals the statutory rate as the Bank does not have significant holdings of tax- exempt securities. The Bank does not anticipate increasing its tax-free securities holdings in the near term. LOANS In the first quarter of 1996, loan balances increased $10,809,000 or 3.4% from the year end balances. Average loan balances for the quarter were $319,601,000 versus $300,461,000 in the same period last year. The loan growth in the first quarter is positive as the first quarter is normally a slower period due to the seasonality of agriculture loans and winter weather conditions. During the first quarter commercial loans increased $4.3 million; construction loans decreased $2.0 million; real estate loans increased $6.9 million and consumer loans were up $1.6 million. Competition for loans remains strong in the market place. The Bank opened a new lending office in Sacramento during the first quarter. Management believes that with the consolidations taking place in the California banking environment good opportunities will arise to increase market share. SECURITIES At March 31, 1996, securities held-to-maturity had a cost basis of $112,874,000 and an approximate fair value of $109,722,000. This portfolio contained mortgage-backed securities totaling $88,784,000 of which $37,047,000 were CMO's. The securities available-for-sale portfolio had a fair value of $72,198,000 and an amortized cost of $72,941,000. This portfolio contained mortgage-backed securities with an amortized cost of $30,773,000 of which $23,093,000 were CMO's. At December 31, 1995, the fair value of the two portfolios was $525,000 less than the amortized cost. As long term interest rates moved up in the first quarter of 1996, at March 31, 1996 the total unrealized loss had increased to $3,895,000. Management has generally continued its policy of allowing the securities portfolio to decrease as paydowns and maturities occur. Approximately $12.1 million of securities matured in the first quarter of 1996 and only $4.5 million of purchases were made as replacements 14 NONPERFORMING LOANS As shown in the following table, total nonperforming assets have increased about 10.4% to $3,383,000 in the first three months of 1996. Non performing assets represent only .58% of total assets. Nonaccrual loans increased while OREO decreased during this period. All nonaccrual loans are considered to be impaired when determining the valuation allowance under SFAS 114. The collections department personnel continue to make a concerted effort to work problem and potential problem loans to reduce risk of loss.
March 31, December 31, --------- ------------ 1996 1995 ---- ---- Nonaccrual loans $ 2,717 $ 2,213 Accruing loans past due 90 days or more 20 220 Restructured loans (in compliance with modified terms) 0 0 ----------- ----------- Total nonperforming loans 2,737 2,433 Other real estate owned 646 631 ----------- ----------- Total nonperforming assets $ 3,383 $ 3,064 =========== =========== Nonincome producing investments in real estate held by Bank's real estate development subsidiary $ 1,173 $ 1,173 =========== =========== Nonperforming loans to total loans 0.83% 0.76% Allowance for loan losses to nonperforming loans 208% 229% Nonperforming assets to total assets 0.58% 0.51% Allowance for loan losses to nonperforming assets 169% 182%
15 ALLOWANCE FOR LOAN LOSS The Bank maintains its allowance for loan losses at a level Management believes will be adequate to absorb probable losses inherent in existing loans, leases and commitments to extend credit, based on evaluations of the collectibility, impairment and prior loss experience of loans, leases and commitments to extend credit. The following table presents information concerning the allowance and provision for loan losses.
March 31, March 31, --------- --------- 1996 1995 ---- ---- (in thousands) Balance, beginning of period $ 5,580 $ 5,608 Provision charged to operations 40 40 Loans charged off (123) (119) Recoveries of loans previously charged off 209 67 ----------- ----------- Balance, end of period $ 5,706 $ 5,596 =========== =========== Ending loan portfolio $ 329,575 $ 296,711 =========== =========== Allowance to loans as a percentage of ending loan portfolio 1.73% 1.89% ----------- -----------
16 EQUITY The following table indicates the amounts of regulatory capital of the Company.
Tier I Total Risk- Leverage Based ------------------------------------------ (dollars in thousands) March 31,1996 Company's % 13.9% 15.2% 9.5% Regulatory minimum % 4.0% 8.0% 4.0% Company's capital $ $ 55,105 $ 60,060 $ 55,105 Regulatory minimum $ 15,858 31,611 23,144 ------------ ------------ ------------ Computed excess $ 39,247 $ 28,449 $ 31,961 ============ ============ ============
17 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 May 6, 1996 /s/Robert H. Steveson ---------------------------- --------------------------------- Robert H. Steveson President and Chief Executive Officer Date May 6, 1996 /s/Robert M. Stanberry ---------------------------- --------------------------------- Robert M. Stanberry Vice President and Chief Financial Officer 18 PART II OTHER INFORMATION Item 6. EXHIBITS INDEX PAGE a. EXHIBITS Computations of Earnings Per Share 20 b. REPORTS ON FORM 8-K: None 19 EX-11 2 EX-11
EXHIBIT 11 COMPUTATIONS OF EARNINGS PER SHARE (in thousands except earnings per share) (unaudited) For the three months ended March 31, 1996 1995 ---- ---- Shares used in the computation of earnings per share(1): Weighted daily average of shares outstanding 4,465,927 4,393,750 Shares used in the computation of primary earnings per shares 4,646,490 4,598,305 ========== ========== Shares used in the computation of fully diluted earnings per share 4,668,500 4,611,876 ========== ========== Net income used in the computation of earnings per common share: Net income, as reported $ 1,744 $ 1,626 Adjustment for preferred stock dividend - (105) ---------- ---------- Net income, as adjusted $ 1,744 $ 1,521 ========== ========== Primary earnings per common share $ 0.38 $ 0.33 ========== ========== Fully diluted earnings per common share $ 0.37 $ 0.33 ========== ========== (1)Retroactively adjusted for stock dividends and splits.
20 EX-27 3 EX-27
9 0000356171 TRICO BANCSHARES 1,000 3-MOS DEC-31-1996 MAR-31-1996 28,761 414,782 8,200 0 72,198 112,874 109,722 329,575 5,706 578,606 491,008 0 9,066 24,289 0 0 44,408 9,835 578,606 8,563 2,731 311 11,605 4,153 4,535 7,070 40 0 5,505 2,991 1,744 0 0 1,744 0.37 0.38 8.67 2,717 20 0 0 5,580 123 209 40 5,706 0 0
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