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):
January 31, 2007
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 January 31, 2007 TriCo Bancshares announced its quarterly earnings for the
period ended December 31, 2006. 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 January 31, 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: February 2, 2007 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 January 31, 2007
PRESS RELEASE Contact: Thomas J. Reddish
For Immediate Release Executive Vice President & CFO
(530) 898-0300
TRICO BANCSHARES ANNOUNCES RECORD ANNUAL AND QUARTERLY EARNINGS FOR THE PERIODS
ENDED DECEMBER 31, 2006
CHICO, Calif. - (January 31, 2007) - TriCo Bancshares (NASDAQ: TCBK), parent
company of Tri Counties Bank, today announced record annual earnings of
$26,830,000 for the year ended December 31, 2006. This represents a 13.4%
increase when compared with earnings of $23,671,000 for the year ended December
31, 2005. Diluted earnings per share for the year ended December 31, 2006
increased 13.1% to $1.64 from $1.45 for the year ended December 31, 2005. Total
assets of the Company increased $79 million (4.3%) to $1.920 billion at December
31, 2006 versus $1.841 billion at December 31, 2005. Total loans of the Company
increased $125 million (9.0%) to $1.510 billion at December 31, 2006 versus
$1.385 billion at December 31, 2005. Total deposits of the Company increased
$102 million (6.8%) to $1.599 billion at December 31, 2006 versus $1.497 billion
at December 31, 2005.
Net income for the quarter ended December 31, 2006 increased 2.7% to $6,918,000
from $6,734,000 in the quarter ended December 31, 2005. Diluted earnings per
share increased 2.4% to $0.42 in the quarter ended December 31, 2006 from $0.41
in the quarter ended December 31, 2005.
The increase in earnings for the quarter ended December 31, 2006 over the
year-ago quarter was due to a $948,000 (4.6%) increase in net interest income to
$21,724,000, and a $561,000 (100%) decrease in provision for loan losses to $0,
which were partially offset by a $1,202,000 (7.6%) increase in noninterest
expense to $17,002,000 from the year-ago quarter. Noninterest income for the
quarter ended December 31, 2006 increased $5,000 (0.1%) to $6,627,000 from the
year-ago quarter.
The increase in net interest income was due to the loan growth noted above,
which was partially offset by a decrease in fully tax-equivalent net interest
margin to 5.13% during the quarter ended December 31, 2006 versus 5.21% during
the quarter ended December 31, 2005. The fully tax-equivalent net interest
margin was 5.19% during the quarter ended September 30, 2006.
The $561,000 decrease in provision for loan loss from the quarter ended December
31, 2006 was mainly due to slower growth in loan balances during the quarter
ended December 31, 2006 as credit quality of the loan portfolio remained high.
Net loan charge-offs during the quarter ended December 31, 2006 were $79,000
compared to $131,000 in the year-ago quarter. Nonperforming loans, net of
government agency guarantees, were $4,512,000 at December 31, 2006 compared to
$2,961,000 and at December 31, 2005. The Company's allowance for losses, which
consists of the allowance for loan losses and the reserve for unfunded
commitments, was $18,763,000 or 1.24% of total loans outstanding and 416% of
nonperforming loans at December 31, 2006 compared to $18,039,000 or 1.30% of
total loans outstanding and 609% of nonperforming loans at December 31, 2005.
The $1,202,000 increase in noninterest expense during the quarter ended December
31, 2006 was mainly due to an $840,000 (9.8%) increase in salaries and benefits
expense to $9,405,000 and a $497,000 (7.4%) increase in other noninterest
expenses to $7,247,000. The increases in salaries and benefits expense was
primarily the result of regular salary increases, the opening of branches in
Roseville, Yuba City, Folsom, Antelope, Anderson, and Elk Grove in November
2005, January 2006, March 2006, May 2006, June 2006 and August 2006,
respectively, and $110,000 of employee stock option expense. The increase in
other noninterest expense was primarily due to inflation and the effect of the
new branches noted above.
The increase in noninterest income was primarily due to a $150,000 (3.1%)
increase in service charges and fees to $4,940,000 during the quarter ended
December 31, 2006 from the quarter ended December 31, 2005. Other noninterest
income decreased $145,000 (7.9%) to $1,687,000 due mainly to a $77,000 increase
in income from cash value of life insurance to $544,000, offset by a $135,000
decrease in gain on sale of loans to $349,000 and a $98,000 decrease in
commission on sale of nondeposit investment products to $417,000.
As of December 31, 2006, the Company had purchased 374,371 shares of its common
stock under its stock repurchase plan announced on July 31, 2003 and amended on
April 9, 2004, which leaves 125,629 shares available for repurchase under the
plan.
Richard Smith, President and Chief Executive Officer commented, "When we
consider the fierce competition that currently exists for deposits, the fact
that the current spread between short-term interest rates and long-term interest
rates makes it harder for banks to be profitable, and the slowdown in real
estate activity, we get a greater appreciation for the effort our team members
put forth to achieve these record quarterly and annual results. We continue to
believe these results reflect our ability to deliver, and our market's
acceptance of, our values of service and convenience."
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 31-year history in the banking industry. Tri Counties
Bank operates 32 traditional branch locations and 22 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 62 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 ended
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December 31, September 30, June 30, March 31, December 31,
2006 2006 2006 2006 2005
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Statement of Income Data
Interest income $31,545 $31,421 $29,379 $27,978 $26,876
Interest expense 9,821 9,576 8,275 6,773 6,100
Net interest income 21,724 21,845 21,104 21,205 20,776
Provision for loan losses - 235 554 500 561
Noninterest income:
Service charges and fees 4,940 5,056 4,956 4,857 4,790
Other income 1,687 1,593 1,575 1,591 1,832
Total noninterest income 6,627 6,649 6,531 6,448 6,622
Noninterest expense:
Salaries and benefits 9,405 9,276 8,618 9,156 8,565
Intangible amortization 350 350 350 346 346
Provision for losses -
unfunded commitments - - 36 - 139
Other expense 7,247 7,400 7,272 6,920 6,750
Total noninterest expense 17,002 17,026 16,276 16,422 15,800
Income before taxes 11,349 11,233 10,805 10,731 11,037
Net income $6,918 $6,820 $6,557 $6,535 $6,734
Share Data
Basic earnings per share $0.44 $0.43 $0.42 $0.42 $0.43
Diluted earnings per share 0.42 0.42 0.40 0.40 0.41
Book value per common share 10.69 10.41 9.96 9.68 9.52
Tangible book value per common share $9.60 $9.22 $8.75 $8.44 $8.25
Shares outstanding 15,857,207 15,857,107 15,855,107 15,778,090 15,707,835
Weighted average shares 15,857,166 15,855,933 15,798,565 15,736,544 15,711,257
Weighted average diluted shares 16,396,320 16,365,858 16,388,855 16,379,595 16,336,888
Credit Quality
Non-performing loans, net of
government agency guarantees $4,512 $4,523 $3,913 $4,048 $2,961
Other real estate owned - - - - -
Loans charged-off 498 368 564 357 392
Loans recovered $419 $233 $259 $275 $261
Allowance for losses to total loans(1) 1.24% 1.25% 1.29% 1.32% 1.30%
Allowance for losses to NPLs(1) 416% 417% 479% 456% 609%
Allowance for losses to NPAs(1) 416% 417% 479% 456% 609%
Selected Financial Ratios
Return on average total assets 1.46% 1.45% 1.42% 1.43% 1.51%
Return on average equity 16.23% 16.64% 16.68% 16.93% 18.00%
Average yield on loans 7.81% 7.82% 7.44% 7.24% 7.11%
Average yield on interest-earning assets 7.43% 7.44% 7.07% 6.86% 6.72%
Average rate on interest-bearing liabilities 2.97% 2.86% 2.50% 2.11% 1.94%
Net interest margin (fully tax-equivalent) 5.13% 5.19% 5.10% 5.21% 5.21%
Total risk based capital ratio 11.3% 11.1% 11.1% 11.1% 10.8%
Tier 1 Capital ratio 10.3% 10.1% 10.1% 10.0% 9.8%
(1) Allowance for losses includes allowance for loan losses and reserve for unfunded commitments.
TRICO BANCSHARES - CONSOLIDATED FINANCIAL DATA
(Unaudited. Dollars in thousands, except share data)
Three months ended
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December 31, September 30, June 30, March 31, December 31,
2006 2006 2006 2006 2005
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Balance Sheet Data
Cash and due from banks $102,220 $78,281 $84,663 $78,742 $90,562
Federal funds sold 794 1,387 526 - 2,377
Securities, available-for-sale 198,361 209,886 221,828 244,441 260,278
Federal Home Loan Bank Stock 8,320 8,206 8,103 7,691 7,602
Loans
Commercial loans 153,105 153,705 146,952 134,049 143,175
Consumer loans 525,513 527,185 517,588 510,809 508,233
Real estate mortgage loans 679,661 661,962 642,422 630,821 623,511
Real estate construction loans 151,600 164,307 149,046 124,429 110,116
Total loans, gross 1,509,879 1,507,159 1,456,008 1,400,108 1,385,035
Allowance for loan losses (16,914) (16,993) (16,893) (16,644) (16,226)
Premises and equipment 21,830 21,556 21,597 21,068 21,291
Cash value of life insurance 43,536 42,991 42,571 42,168 41,768
Goodwill 15,519 15,519 15,519 15,519 15,519
Intangible assets 1,666 3,361 3,711 4,061 4,407
Other assets 34,755 32,651 33,523 32,372 28,662
Total assets 1,919,966 1,904,004 1,871,156 1,829,526 1,841,275
Deposits
Noninterest-bearing demand deposits 420,025 357,754 354,576 354,514 368,412
Interest-bearing demand deposits 230,671 229,143 235,100 249,064 244,193
Savings deposits 374,605 369,933 388,847 432,087 438,177
Time certificates 573,848 568,344 535,917 491,726 446,015
Total deposits 1,599,149 1,525,174 1,514,440 1,527,391 1,496,797
Federal funds purchased 38,000 106,500 96,700 45,800 96,800
Reserve for unfunded commitments 1,849 1,849 1,849 1,813 1,813
Other liabilities 30,383 28,254 24,964 29,046 23,744
Other borrowings 39,911 35,848 33,971 31,441 31,390
Junior subordinated debt 41,238 41,238 41,238 41,238 41,238
Total liabilities 1,750,530 1,738,863 1,713,162 1,676,729 1,691,782
Total shareholders' equity 169,436 165,141 157,994 152,797 149,493
Accumulated other
comprehensive loss (4,521) (3,607) (5,629) (5,330) (3,825)
Average loans 1,498,040 1,477,551 1,427,735 1,384,541 1,344,654
Average interest-earning assets 1,711,743 1,701,166 1,676,705 1,646,777 1,615,901
Average total assets 1,890,765 1,880,029 1,850,487 1,822,441 1,784,018
Average deposits 1,550,979 1,501,630 1,497,571 1,498,825 1,473,625
Average total equity $170,518 $163,919 $157,232 $154,410 $149,619