TriCo Bancshares (TCBK) 8-K Trico Bancshares Announces Quarterly Results

Exhibit 99.1

PRESS RELEASE	Contact:  Richard P. Smith
For Immediate Release	President & CEO (530) 898-0300

TRICO BANCSHARES ANNOUNCES QUARTERLY RESULTS

CHICO, Calif. – (October 29, 2010) – TriCo Bancshares (NASDAQ: TCBK) (the “Company”), parent company of Tri Counties Bank (the “Bank”), today announced a quarterly earnings of $1,000 for the quarter ended September 30, 2010. This compares with earnings of $2,255,000 the Company reported for the quarter ended September 30, 2009. Diluted earnings per share for the quarter ended September 30, 2010 was $0.00 compared to diluted earnings per share of $0.14 for the quarter ended September 30, 2009. Diluted earnings per share for the nine months ended September 30, 2010 and 2009 were $0.18 and $0.48, respectively, on earnings of $2,879,000 and $7,649,000, respectively.

Total assets of the Company increased $133,952,000 (6.4%) to $2,229,618,000 at September 30, 2010 from $2,095,666,000 at September 30, 2009. Total loans of the Company decreased $78,420,000 (5.1%) to $1,452,792,000 at September 30, 2010 from $1,531,212,000 at September 30, 2009. Total deposits of the Company increased $136,646,000 (7.8%) to $1,888,541,000 at September 30, 2010 from $1,751,895,000 at September 30, 2009.

Included in the Company’s results for the three and nine month periods ended September 30, 2010 is the acquisition by Tri Counties Bank of the banking operations of Granite Community Bank (“Granite”), Granite Bay, California from the FDIC under a whole bank purchase and assumption agreement with loss sharing on May 28, 2010. The assets acquired and liabilities assumed in the Granite acquisition have been accounted for under the acquisition method of accounting (formerly the purchase method). The acquired loan portfolio and foreclosed assets are referred to as “covered loans” and “covered foreclosed assets”, respectively, and are presented as separate line items in the Company’s consolidated balance sheet. Collectively these balances are referred to as “covered assets”.

The following is a summary of the components of fully taxable equivalent (“FTE”) net income for the periods indicated (dollars in thousands):

	Three months ended
	September 30,
	2010			2009
Net Interest Income (FTE)	$	23,829		$	23,257
Provision for loan losses		(10,814	)		(8,000	)
Noninterest income		7,163			7,793
Noninterest expense		(20,524	)		(19,377	)
Benefit (provision) for income taxes (FTE)		347			(1,418	)
Net income	$	1		$	2,255

Net interest income (FTE) for the three months ended September 30, 2010 was $23,829,000, an increase of $572,000 or 2.5% compared to the same period in 2009. The results for the three month period ended September 30, 2010 as compared to the same period in 2009 is attributable to a change in the mix of interest-earning assets, with average loan balances decreasing and other categories of lower yielding assets increasing. The FDIC-assisted purchase and assumption of certain assets and liabilities of Granite, which was completed on May 28, 2010, contributed to the increase in interest-bearing liabilities in the three month period ended September 30, 2010 over the same periods in 2009.

The following table details the components of the net interest income and net interest margin on a fully tax-equivalent (FTE) basis for the three months ended September 30, 2010 and 2009:

	Quarter ended September 30, 2010									Quarter ended September 30, 2009
	Average						Yield/			Average					Yield/
(Dollars in thousands)	Balance			Income			Rate			Balance		Income			Rate
Assets:
Loans	$	1,481,497		$	24,489			6.61	%	$	1,538,239	$	24,909			6.48	%
Securities		275,768			2,637			3.83	%		269,382		3,031			4.50	%
Cash at Fed and other banks		302,843			200			0.26	%		161,422		101			0.25	%
Total earning assets		2,060,108			27,326			5.31	%		1,969,043		28,041			5.70	%
Other assets		177,562									130,010
Total assets		2,237,670									2,099,053
Liabilities and shareholders’ equity:
Interest-bearing demand deposits	$	387,398			582			0.60	%	$	305,767	$	565			0.74	%
Savings deposits		563,661			573			0.41	%		456,839		752			0.66	%
Time deposits		555,640			1,399			1.01	%		632,922		2,869			1.81	%
Junior sub debt		41,238			335			3.25	%		41,238		348			3.38	%
Other borrowings		61,926			608			3.93	%		71,031		250			1.41	%
			��
Total interest-bearing liabilities	$	1,609,863			3,497			0.87	%	$	1,507,797		4,784			1.27	%
Noninterest-bearing deposits		386,978									348,808
Other liabilities		35,505									38,996
Shareholders’ equity		205,324									203,452
Total liabilities and shareholders’ equity	$	2,237,670								$	2,099,053
Net interest rate spread								4.44	%							4.43	%
Net interest income/net interest margin FTE					23,829			4.63	%				23,257			4.72	%
FTE adjustment					(93	)							(152	)
Net interest income before FTE adjustment					23,736							$	23,105

The provision for loan losses was $10,814,000 for the three months ended September 30, 2010, compared to $8,000,000 for the three months ended September 30, 2009. The increases in the provision for loan losses for the three months ended September 30, 2010 as compared to the same period in 2009 was primarily the result of changes in the make-up of the loan portfolio and the Bank’s loss factors in reaction to increased losses in the construction, commercial real estate, commercial & industrial (C&I), home equity and auto indirect loan portfolios. Management re-evaluates its loss ratios and assumptions quarterly and makes changes as appropriate based upon, among other things, changes in loss rates experienced, collateral support for underlying loans, changes and trends in the economy, and changes in the loan mix. Included in the provision for loan losses for the three months ended September 30, 2010 is $214,000 related to loans covered under FDIC loss sharing agreements.

Noninterest income for the three months ended September 30, 2010 was $7,163,000, a decrease of $630,000, or 8.1%, as compared to the same period in 2009. The following table presents the key components of noninterest income for the three months ended September 30, 2010 and 2009:

	Three months ended September 30,
							Change			Change
(dollars in thousands)	2010			2009			Amount			Percent
Service charges on deposit accounts	$	3,565		$	4,207			($642	)		(15.3	%)
ATM fees and interchange revenue		1,578			1,287			291			22.6	%
Other service fees		703			567			136			24.0	%
Change in value of mortgage servicing rights		(609	)		(416	)		(193	)		(46.4	%)
Gain on sale of loans		1,090			1,205			(115	)		(9.5	%)
Commissions on sale of nondeposit investment products		239			380			(141	)		(37.1	%)
Increase in cash value of life insurance		426			270			156			57.8	%
Gain (loss) on disposition of foreclosed assets		55			172			(117	)		(68.0	%)
Change in FDIC loss-share indemnification asset		(20	)		—			(20	)
Other noninterest income		136			121			15			12.4	%
Total noninterest income	$	7,163		$	7,793			($630	)		(8.1	%)

The decrease in service charges in the three months ended September 30, 2010 over the same period in 2009 is mainly due to new overdraft regulations that became effective on July 1, 2010 and caused a decrease in non-sufficient funds fees. ATM fees and interchange revenue increased due to increased customer point-of -sale transactions that are the result of incentives for such usage. Other service fees increase mainly due to increased loan servicing fees from higher balances of loans being serviced. Change in value of mortgage servicing rights decreased primarily due to decreased residential mortgage rates that are expected to increase the pace of future mortgage refinancing that in turn adversely effect the value of mortgage servicing rights. Gain on sale of loans decreased due to decreased mortgage refinancing when compared to prior year similar periods. The improvement in increase in cash value of life insurance is due to increased earnings rates from such insurance policies.

Noninterest expense for the three months ended September 30, 2010 was $20,524,000, an increase of $1,147,000, or 5.9%, as compared to the same period in 2009. Noninterest expense for the nine months ended September 30, 2010 was $57,735,000, an increase of $1,813,000, or 3.2%, as compared to the same period in 2009. The following table presents the key components of noninterest expense for the three and nine months ended September 30, 2010 and 2009:

	Three months ended
	September 30,
							Change			Change
(dollars in thousands)	2010			2009			Amount			Percent
Base salaries, net of deferred loan origination costs	$	7,131		$	6,827		$	304			4.5	%
Incentive compensation		294			980			(686	)		(70.0	%)
Benefits and other compensation costs		2,473			2,456			17			0.7	%
Total salaries and related benefits		9,898			10,263			(365	)		(3.6	%)
Occupancy		1,524			1,316			208			15.8	%
Equipment		990			953			37			3.9	%
Telecommunications		487			428			59			13.8	%
Data processing and software		679			655			24			3.7	%
Provisions for losses – unfunded commitments		—			500			(500	)		(100.0	%)
ATM network charges		472			642			(170	)		(26.5	%)
Professional fees		662			478			184			38.5	%
Advertising and marketing		490			558			(68	)		(12.2	%)
Courier service		207			189			18			9.5	%
Postage		262			258			4			1.6	%
Intangible amortization		85			65			20			30.8	%
Operational losses		105			97			8			8.2	%
Provision for foreclosed asset losses		1,130			26			1,104			4,246	%
Foreclosed assets expense		97			145			(48	)		(33.1	%)
Assessments		824			696			128			18.4	%
Other		2,612			2,108			504			23.9	%
Total other noninterest expense		10,626			9,114			1,512			16.6	%
Total noninterest expense	$	20,524		$	19,377		$	1,147			5.9	%
Average full time equivalent staff		668			645
Noninterest expense to revenue (FTE)		66.2	%		62.4	%

Salaries and related benefits decreased $365,000, or 3.6% in the three months ending September 30, 2010, as compared to the same period in the prior year. The decrease was due to reduced incentive compensation in all product lines that was partially offset by the effects of a 3.6% percent increase in average full time equivalent staff, primarily in new branches and loan collection functions, and annual salary merit increases. Occupancy and equipment expenses increased for the three months ended September 30, 2010, as compared to the same period in the prior year, primarily due to four new branch openings, one each in the third and fourth quarters of 2009 and one each in the first and second quarters of 2010, and three branches and one admin facility acquired in the Granite acquisition on May 28, 2010. The decrease in provision for losses — unfunded commitments was due to reduced

estimates of future uses of such commitments and reduced estimated loss rates on such future commitments. The increase in professional fees is mainly due to legal fees related to loan collection efforts. The increase in provision for foreclosed asset losses is due to additional value deterioration of such foreclosed assets.

For the three months ended September 30, 2010, the Company recorded an income tax benefit of $440,000. This tax benefit represents 100% of the $439,000 before tax loss recorded for the three months ended September 30, 2010. The effective tax rate for the three month period ended September 30, 2009 was 36.0%. The provision or benefit for income taxes for all periods presented is primarily attributable to the respective level of earnings and the incidence of allowable deductions, particularly from increase in cash value of life insurance, tax-exempt loans and state and municipal securities.

In addition to the historical information contained herein, this press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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, interest rate fluctuations, economic conditions in the Company’s primary market area, demand for loans, regulatory and accounting changes, 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 detailed in the Company’s reports filed with the Securities and Exchange Commission which are incorporated herein by reference, including the Form 10-K for the year ended December 31, 2009. These reports and 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. Any forward-looking statement may turn out to be wrong and cannot be guaranteed. The Company does not intend to update any of the forward-looking statements after the date of this release.

TriCo Bancshares and Tri Counties Bank are headquartered in Chico, California. Tri Counties Bank has a 35-year history in the banking industry. It operates 34 traditional branch locations and 27 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 69 ATMs and a 24-hour, seven days-a-week telephone customer service center. Brokerage services are provided by the Bank’s investment services affiliate, Raymond James Financial Services, Inc. For further information please visit the Tri Counties Bank web site athttp://www.tricountiesbank.com.

TRICO BANCSHARES — CONSOLIDATED FINANCIAL DATA
(Unaudited. Dollars in thousands, except share data)

	Three months ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2010			2010			2010			2009			2009
Statement of Income Data
Interest income	$	27,233		$	25,776		$	25,936		$	27,130		$	27,889
Interest expense		3,497			3,642			3,958			4,661			4,784
Net interest income		23,736			22,134			21,978			22,469			23,105
Provision for loan losses		10,814			10,000			8,500			7,800			8,000
Noninterest income:
Service charges and fees		5,237			6,082			5,735			5,943			5,645
Other income		1,926			2,022			1,812			1,982			2,148
Total noninterest income		7,163			8,104			7,547			7,925			7,793
Noninterest expense:
Base salaries net of deferred loan origination costs		7,131			6,990			6,974			7,031			6,827
Incentive compensation expense		294			526			546			308			980
Employee benefits and other compensation expense		2,473			2,469			2,630			2,350			2,456
Total salaries and benefits expense		9,898			9,985			10,150			9,689			10,263
Intangible amortization		85			72			65			65			65
Provision for losses - unfunded commitments		—			(800	)		—			—			500
Other expense		10,541			9,151			8,588			9,774			8,549
Total noninterest expense		20,524			18,408			18,803			19,528			19,377
(Loss) income before taxes		(439	)		1,830			2,222			3,066			3,521
Net income	$	1		$	1,320		$	1,558		$	2,313		$	2,255
Share Data
Basic earnings per share	$	0.00		$	0.08		$	0.10		$	0.15		$	0.14
Diluted earnings per share	$	0.00		$	0.08		$	0.10		$	0.14		$	0.14
Book value per common share	$	12.66		$	12.76		$	12.63		$	12.71		$	12.79
Tangible book value per common share	$	11.64		$	11.74		$	11.63		$	11.71		$	11.78
Shares outstanding		15,860,138			15,860,138			15,860,138			15,787,753			15,787,753
Weighted average shares		15,860,138			15,860,138			15,822,789			15,787,753			15,787,264
Weighted average diluted shares		15,972,826			16,107,909			16,073,875			16,012,078			16,015,952
Credit Quality
Nonperforming noncovered loans, net of government agency guarantees	$	80,853		$	68,034		$	65,431		$	44,896		$	46,607
Noncovered foreclosed assets, net of allowance		6,853			5,621			5,579			3,726			2,372
Noncovered loans charged-off		11,163			8,424			8,101			7,258			7,471
Noncovered loans recovered	$	689		$	513		$	468		$	380		$	398
Allowance for losses to total noncovered loans(1)		2.75	%		2.87	%		2.75	%		2.61	%		2.49	%
Allowance for losses to noncovered NPLs(1)		51	%		61	%		61	%		87	%		82	%
Allowance for losses to noncovered NPAs(1)		47	%		56	%		56	%		80	%		78	%
Selected Financial Ratios
Return on average total assets		0.00	%		0.24	%		0.29	%		0.43	%		0.43	%
Return on average equity		0.00	%		2.61	%		3.05	%		4.51	%		4.43	%
Average yield on loans		6.61	%		6.20	%		6.21	%		6.46	%		6.48	%
Average yield on interest-earning assets		5.31	%		5.13	%		5.19	%		5.48	%		5.70	%
Average rate on interest-bearing liabilities		0.87	%		0.92	%		1.02	%		1.22	%		1.27	%
Net interest margin (fully tax-equivalent)		4.63	%		4.41	%		4.40	%		4.55	%		4.72	%

⁽¹⁾ Allowance for losses includes allowance for noncovered 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,
Balance Sheet Data	2010			2010			2010			2009			2009
Cash and due from banks	$	398,191		$	322,644		$	308,664		$	346,589		$	234,570
Securities, available-for-sale		250,012			275,783			292,065			211,622			230,962
Federal Home Loan Bank Stock		9,157			9,523			9,274			9,274			9,274
Loans held for sale		9,455			4,153			—			—			—
Noncovered loans:
Commercial loans		139,538			151,349			147,988			163,181			171,583
Consumer loans		425,676			436,598			444,831			458,083			473,411
Real estate mortgage loans		788,053			810,469			813,770			820,016			814,132
Real estate construction loans		39,614			40,116			48,600			58,931			72,086
Total noncovered loans, gross		1,392,881			1,438,532			1,455,189			1,500,211			1,531,212
Allowance for noncovered loan losses		(38,556	)		(38,430	)		(36,340	)		(35,473	)		(34,551	)
Covered loans, net of allowance		59,697			62,408			—			—			—
Noncovered foreclosed assets		6,853			5,621			5,579			3,726			2,372
Covered foreclosed assets		4,319			4,324			—			—			—
Premises and equipment		18,947			19,001			19,178			18,742			18,102
Cash value of life insurance		49,972			49,546			49,120			48,694			47,635
Goodwill		15,519			15,519			15,519			15,519			15,519
Intangible assets		665			750			260			325			389
Mortgage servicing rights		3,905			4,033			4,310			4,089			4,033
FDIC indemnification asset		5,098			7,515			—			—			—
Accrued interest receivable		7,318			7,472			7,715			7,763			7,666
Other assets		36,185			36,251			39,054			39,439			28,483
Total assets		2,229,618			2,224,645			2,169,587			2,170,520			2,095,666
Deposits:
Noninterest-bearing demand deposits		389,315			386,617			378,695			377,334			349,949
Interest-bearing demand deposits		383,859			383,578			375,313			359,179			314,160
Savings deposits		577,603			552,616			533,115			511,671			473,915
Time certificates		537,764			567,138			546,174			580,328			613,871
Total deposits		1,888,541			1,889,949			1,833,297			1,828,512			1,751,895
Accrued interest payable		2,368			2,487			3,064			3,614			4,136
Reserve for unfunded commitments		2,840			2,840			3,640			3,640			3,640
Other liabilities		26,721			25,257			27,112			26,114			26,623
Other borrowings		67,182			60,452			60,952			66,753			66,197
Junior subordinated debt		41,238			41,238			41,238			41,238			41,238
Total liabilities		2,028,890			2,022,223			1,969,303			1,969,871			1,893,729
Total shareholders’ equity		200,728			202,422			200,284			200,649			201,937
Accumulated other comprehensive gain (loss)		3,606			4,132			2,053			2,278			3,934
Average loans		1,481,497			1,463,473			1,469,685			1,508,472			1,538,239
Average interest-earning assets		2,060,108			2,019,684			2,008,896			1,988,011			1,969,043
Average total assets		2,237,670			2,191,660			2,169,138			2,135,622			2,099,053
Average deposits		1,893,677			1,849,118			1,825,190			1,784,271			1,744,336
Average total equity	$	205,324		$	203,528		$	204,200		$	205,256		$	203,452
Total risk based capital ratio		13.8	%		13.6	%		13.5	%		13.4	%		13.2	%
Tier 1 capital ratio		12.6	%		12.3	%		12.3	%		12.1	%		11.9	%
Tier 1 leverage ratio		9.9	%		10.2	%		10.3	%		10.5	%		10.6	%
Tangible capital ratio		8.3	%		8.4	%		8.6	%		8.6	%		8.9	%