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. – (April 29, 2013) – TriCo Bancshares (NASDAQ: TCBK) (the “Company”), parent company of Tri Counties Bank (the “Bank”), today announced earnings of $8,477,000, or $0.53 per diluted share, for the three months ended March 31, 2013. These results compare to earnings of $3,931,000, or $0.25 per diluted share reported by the Company for the three months ended March 31, 2012.

Total assets of the Company increased $79,525,000 (3.1%) to $2,612,433,000 at March 31, 2013 from $2,532,908,000 at March 31, 2012. Total loans increased $21,277,000 (1.4%) to $1,532,362,000 at March 31, 2013 from $1,511,085,000 at March 31, 2012. Total deposits increased $115,804,000 (5.3%) to $2,285,550,000 at March 31, 2013 from $2,169,746,000 at March 31, 2012.

The following is a summary of the components of the Company’s consolidated net income for the periods indicated:

	Three months ended March 31,						$ Change			% Change
(dollars in thousands)	2013			2012
Net Interest Income	$	24,569		$	25,036		($	467	)		(1.9	%)
Benefit from (provision for) loan losses		1,108			(3,996	)		5,104			(127.7	%)
Noninterest income		10,218			8,265			1,953			23.6	%
Noninterest expense		(21,601	)		(22,915	)		1,314			(5.7	%)
Provision for income taxes		(5,817	)		(2,459	)		(3,358	)		136.6	%
Net income	$	8,477		$	3,931		$	4,546			115.6	%

The following table shows the components of net interest income and net interest margin on a fully tax-equivalent (FTE) basis for the periods indicated:

ANALYSIS OF CHANGE IN NET INTEREST MARGIN ON EARNING ASSETS

(unaudited, dollars in thousands)

	Three Months Ended March 31, 2013								Three Months Ended December 31, 2012								Three Months Ended March 31, 2012
	Average Balance		Income/ Expense			Yield/ Rate			Average Balance		Income/ Expense			Yield/ Rate			Average Balance		Income/ Expense			Yield/ Rate
Assets
Earning assets
Loans	$	1,548,565	$	24,072			6.22	%	$	1,574,329	$	24,245			6.16	%	$	1,527,536	$	24,929			6.53	%
Investments—taxable		156,057		1,187			3.04	%		174,954		1,348			3.08	%		224,737		1,759			3.13	%
Investments—nontaxable		8,884		162			7.29	%		9,433		168			7.12	%		9,561		173			7.24	%
Federal funds sold		721,424		446			0.25	%		624,510		445			0.29	%		573,008		368			0.26	%
Total earning assets		2,434,930		25,867			4.25	%		2,383,226		26,206			4.40	%		2,334,842		27,229			4.66	%
Other assets, net		174,864								182,081								179,699
Total assets	$	2,609,794							$	2,565,307							$	2,514,541
Liabilities and shareholders’ equity
Interest-bearing
Demand deposits	$	520,507		141			0.11	%	$	494,259		174			0.14	%	$	439,786		217			0.20	%
Savings deposits		782,173		271			0.14	%		772,233		305			0.16	%		790,590		297			0.15	%
Time deposits		333,556		513			0.62	%		347,714		570			0.66	%		402,985		670			0.67	%
Other borrowings		8,188		1			0.05	%		9,024		2			0.09	%		70,104		606			3.46	%
Trust preferred securities		41,238		311			3.02	%		41,238		321			3.11	%		41,238		338			3.28	%
Total interest-bearing liabilities		1,685,662		1,237			0.29	%		1,664,468		1,372			0.33	%		1,744,703		2,128			0.49	%
Noninterest-bearing deposits		651,303								633,570								515,851
Other liabilities		39,150								36,973								33,621
Shareholders’ equity		233,679								230,296								220,366
Total liabilities and shareholders’ equity	$	2,609,794							$	2,565,307							$	2,514,541
Net interest rate spread							3.96	%							4.07	%							4.17	%
Net interest income/net interest margin (FTE)				24,630			4.05	%				24,834			4.17	%				25,101			4.30	%
FTE adjustment				(61	)							(63	)							(65	)
Net interest income (not FTE)			$	24,569							$	24,771							$	25,036

Net interest income (FTE) during the first quarter of 2013 decreased $471,000 (1.9%) from the same period in 2012 to $24,630,000. The decrease in net interest income (FTE) was due primarily to a 31 basis point decrease in average yield on loans, and a $69,357,000 decrease in average balance of investments, that were partially offset by a $21,029,000 increase in the average balance of loans, and a $61,916,000 decrease in the average balance of other borrowings. The 31 basis point decrease in average loan yields reduced net interest income by $1,200,000 while the decrease in average investment balances reduced net interest income by $549,000 from the year ago period. The increase in average loan balances added $343,000 to net interest income, and the decrease in average other borrowings added $536,000 to net interest income when compared to the year ago period. Accretion of loan purchase discounts totaling $1,530,000 and $2,080,000 are included in interest income for the three months ended March 31, 2013 and 2012, respectively.

Loans acquired through purchase or acquisition of other banks are classified as Purchased Not Credit Impaired (PNCI), Purchased Credit Impaired – cash basis (PCI – cash basis), or Purchased Credit Impaired – other (PCI – other). Loans not acquired in an acquisition or otherwise “purchased” are classified as “originated”. Often, such purchased loans are purchased at a discount to face value, and part of this discount is accreted into (added to) interest income over the remaining life of the loan. Generally, as time goes on, the effect of this discount accretion becomes less and less as these purchased loans mature or payoff early. Further details regarding interest income from loans, including fair value discount accretion, may be found under the heading “Supplemental Loan Interest Income Data” in the Consolidated Financial Data table at the end of this announcement.

The Company benefited from a $1,108,000 reversal of provision for loan losses in the first quarter of 2013 versus a $1,524,000 provision for loan losses in the fourth quarter of 2012, and a $3,996,000 provision for loan losses in the first quarter of 2012. The $1,108,000 reversal of provision for loan losses in the first quarter of 2013 is due primarily to a decrease in the required allowance for loan losses as of March 31, 2013 when compared to the required allowance for loan losses as of December 31, 2012 less net loan charge offs during the three months ended March 31, 2013. The decrease in the required allowance for loan losses during the quarter ended March 31, 2013 is due primarily to reduced impaired loans, improvements in estimated cash flows and collateral values for the remaining impaired loans, and reductions in historical loss factors that, in part, determine the required loan loss allowance for performing loans in accordance with the Company’s allowance for loan losses methodology.

The following table presents the key components of noninterest income for the periods indicated:

	Three months ended March 31,						$ Change			% Change
(dollars in thousands)	2013			2012
Service charges on deposit accounts		3,140			3,527		($	387	)		(11.0	%)
ATM fees and interchange		1,875	��		1,819			56			3.1	%
Other service fees		559			603			(44	)		(7.3	%)
Mortgage banking service fees		416			372			44			11.8	%
Change in value of mortgage servicing rights		(61	)		(369	)		308			(83.5	%)
Total service charges and fees		5,929			5,952			(23	)		(0.4	%)
Gain on sale of loans		2,294			1,650			644			39.0	%
Commission on NDIP		761			819			(58	)		(7.1	%)
Increase in cash value of life insurance		426			450			(24	)		(5.3	%)
Change in indemnification asset		(101	)		(353	)		252			(71.4	%)
Gain on sale of foreclosed assets		551			(358	)		909			(253.9	%)
Other noninterest income		358			105			253			241.0	%
Total other noninterest income		4,289			2,313			1,976			85.4	%
Total noninterest income		10,218			8,265		$	1,953			23.6	%

Noninterest income increased $1,953,000 (23.6%) to $10,218,000 in the three months ended March 31, 2013 when compared to the three months ended March 31, 2012. The increase in noninterest income was due primarily to a $909,000 increase in gain/loss on sale of foreclosed assets to $551,000, and a $644,000 increase in gain on sale of loans to $2,294,000. The increase in gain on sale of foreclosed assets is due to a general increase in property values and sales activity from their lows during the financial crisis that started in 2008. The increase in gain on sale of loans is due to increased residential real estate loan refinance activity and our focus to service that activity.

Salary and benefit expenses increased $199,000 (1.6%) to $12,961,000 during the three months ended March 31, 2013 compared to the three months ended March 31, 2012. Base salaries increased $189,000 (2.3%) to $8,348,000 during the three months ended March 31, 2013 versus the year ago period due mainly to a 2.6% increase in average full time equivalent staff to 750 and annual merit increases, that were substantially offset by a March 2012 reduction in temporary employee expense that was related to the Citizens acquisition in September 2011. Incentive and commission related salary expenses decreased $89,000 (6.5%) to $1,286,000 during three months ended March 31, 2013 due primarily to decreases in production related incentives. Benefits expense, including retirement, medical and workers’ compensation insurance, and taxes, increased $99,000 (3.1%) to $3,327,000 during the three months ended March 31, 2013 due primarily to the increase in average full time equivalent staff noted above.

Other noninterest expenses decreased $1,513,000 (14.9%) to $8,640,000 during the three months ended March 31, 2013 when compared to the three months ended March 31, 2012. The decrease in other noninterest expense is due primarily a $482,000 (79.3%) decrease in the provision for, and expenses related to, foreclosed assets, a $250,000 increase in reversal of provision for loan losses related to unfunded commitments from $190,000 to $440,000, a $216,000 (16.7%) decrease in data processing and software expense, and a $173,000 (34.7%) decrease in advertising and marketing expense. The decreases in foreclosed asset provision and expenses are due to increased property values and a reduction in foreclosed assets from $14,789,000 at March 31, 2012 to $6,124,000 at March 31, 2013. The increase in reversal of provision for loan losses related to unfunded commitments is due to a decrease

in expected losses related to those commitments and the relative change in the amount unfunded commitment from the previous year end. The decrease in data processing and software expense is due primarily to the absence of expenses associated with a system conversion in March 2012 related to the Citizens acquisition in September 2011, and cost savings efforts in this area. The decrease in advertising and marketing expense from the year ago period is due to cost savings efforts in this area. The following table presents the key components of the Company’s noninterest expense for the periods indicated:

	Three months ended March 31,						$ Change			% Change
(dollars in thousands)	2013			2012
Salaries	$	8,348		$	8,159		$	189			2.3	%
Commissions and incentives		1,286			1,375			(89	)		(6.5	%)
Employee benefits		3,327			3,228			99			3.1	%
Total salaries and benefits expense		12,961			12,762			199			1.6	%
Occupancy		1,659			1,716			(57	)		(3.3	%)
Equipment		1,034			1,117			(83	)		(7.4	%)
Change in reserve for unfunded commitments		(440	)		(190	)		(250	)
Data processing and software		1,078			1,294			(216	)		(16.7	%)
Telecommunications		525			555			(30	)		(5.4	%)
ATM network charges		496			567			(71	)		(12.5	%)
Professional fees		486			423			63			14.9	%
Advertising and marketing		325			498			(173	)		(34.7	%)
Postage		231			256			(25	)		(9.8	%)
Courier service		167			189			(22	)		(11.6	%)
Intangible amortization		52			53			(1	)		(1.9	%)
Operational losses		117			116			1			0.9	%
Provision for foreclosed asset losses		27			83			(56	)		(67.5	%)
Foreclosed asset expense		99			525			(426	)		(81.1	%)
Assessments		606			606			0			0.0	%
Other		2,178			2,210			(32	)		(1.4	%)
Total other noninterest expense		8,640			10,018			(1,378	)		(13.8	%)
Total noninterest expense	$	21,601		$	22,780		($	1,179	)		(5.2	%)

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, 2012. 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 38-year history in the banking industry. It operates 41 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 72 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
	March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012
Statement of Income Data
Interest income	$	25,806		$	26,143		$	27,465		$	27,944		$	27,164
Interest expense		1,237			1,372			1,834			2,010			2,128
Net interest income		24,569			24,771			25,631			25,934			25,036
(Benefit from) provision for loan losses		(1,108	)		1,524			532			3,371			3,996
Noninterest income:
Service charges and fees		5,929			6,035			5,783			6,155			5,952
Other income		4,289			3,976			3,344			4,422			2,313
Total noninterest income		10,218			10,011			9,127			10,577			8,265
Noninterest expense:
Base salaries net of deferred loan origination costs		8,348			8,324			8,337			8,273			8,159
Incentive compensation expense		1,286			1,162			1,254			1,347			1,375
Employee benefits and other compensation expense		3,327			2,852			2,771			2,870			3,228
Total salaries and benefits expense		12,961			12,338			12,362			12,490			12,762
Other noninterest expense		8,640			12,788			13,228			11,877			10,153
Total noninterest expense		21,601			25,126			25,590			24,367			22,915
Income before taxes		14,294			8,132			8,636			8,773			6,390
Net income	$	8,477		$	4,722		$	5,020		$	5,321		$	3,931
Share Data
Basic earnings per share	$	0.53		$	0.30		$	0.31		$	0.33		$	0.25
Diluted earnings per share	$	0.53		$	0.29		$	0.31		$	0.33		$	0.25
Book value per common share	$	14.75		$	14.33		$	14.21		$	13.96		$	13.71
Tangible book value per common share	$	13.71		$	13.30		$	13.16		$	12.91		$	12.66
Shares outstanding		16,005,191			16,000,838			15,992,893			15,992,893			15,978,958
Weighted average shares		16,002,482			15,996,137			15,992,893			15,985,922			15,978,958
Weighted average diluted shares		16,091,150			16,064,685			16,051,876			16,047,344			16,042,765
Credit Quality
Nonperforming originated loans	$	54,763		$	61,769		$	66,654		$	69,749		$	70,764
Total nonperforming loans		63,963			72,516			81,611			82,877			82,575
Guaranteed portion of nonperforming loans		108			131			218			218			218
Foreclosed assets, net of allowance		6,124			7,498			10,185			12,743			14,789
Loans charged-off		2,771			4,006			3,368			4,188			4,922
Loans recovered		1,098			983			1,133			1,214			464
Selected Financial Ratios
Return on average total assets		1.30	%		0.74	%		0.80	%		0.85	%		0.63	%
Return on average equity		14.51	%��		8.20	%		8.85	%		9.54	%		7.14	%
Average yield on loans		6.22	%		6.16	%		6.49	%		6.73	%		6.53	%
Average yield on interest-earning assets		4.25	%		4.40	%		4.68	%		4.81	%		4.66	%
Average rate on interest-bearing liabilities		0.29	%		0.33	%		0.44	%		0.48	%		0.49	%
Net interest margin (fully tax-equivalent)		4.05	%		4.17	%		4.37	%		4.46	%		4.30	%
Supplemental Loan Interest Income Data:
Discount accretion PCI—cash basis loans		167			42			24			108			18
Discount accretion PCI—other loans		597			979			1,192			886			776
Discount accretion PNCI loans		766			841			591			1,391			1,286
Regular interest Purchased loans		3,074			3,226			3,251			3,439			3,420
All other loan interest income		19,468			19,157			20,472			19,968			19,429
Total loan interest income		24,072			24,245			25,530			25,792			24,929

TRICO BANCSHARES—CONSOLIDATED FINANCIAL DATA

(Unaudited. Dollars in thousands)

	Three months ended
	March 31, 2013			December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012
Balance Sheet Data
Cash and due from banks	$	802,271		$	748,899		$	622,494		$	644,102		$	681,760
Securities, available-for-sale		144,454			163,027			183,432			202,849			212,157
Federal Home Loan Bank Stock		9,647			9,647			9,647			9,990			10,508
Loans held for sale		7,931			12,053			14,937			5,321			5,869
Loans:
Commercial loans		115,483			135,528			145,469			139,733			129,906
Consumer loans		376,063			386,111			388,844			393,248			419,539
Real estate mortgage loans		1,010,249			1,010,130			1,007,432			984,147			924,336
Real estate construction loans		30,567			33,054			33,902			35,354			37,304
Total loans, gross		1,532,362			1,564,823			1,575,647			1,552,482			1,511,085
Allowance for loan losses		(39,867	)		(42,648	)		(44,146	)		(45,849	)		(45,452	)
Foreclosed assets		6,124			7,498			10,185			12,743			14,789
Premises and equipment		29,468			26,985			24,083			22,595			19,814
Cash value of life insurance		51,008			50,582			50,742			50,292			50,853
Goodwill		15,519			15,519			15,519			15,519			15,519
Intangible assets		1,040			1,092			1,144			1,196			1,248
Mortgage servicing rights		4,984			4,552			4,485			4,757			4,784
FDIC indemnification asset		1,807			1,997			2,485			4,046			3,405
Accrued interest receivable		7,201			6,636			7,638			7,545			7,095
Other assets		38,484			38,607			37,189			38,030			39,474
Total assets	$	2,612,433			2,609,269			2,515,481			2,525,618			2,532,908
Deposits:
Noninterest-bearing demand deposits		639,420			684,833			592,529			578,010			564,143
Interest-bearing demand deposits		531,695			503,465			483,557			480,337			488,573
Savings deposits		786,352			762,919			767,244			737,433			724,449
Time certificates		328,083			338,485			358,309			369,997			392,581
Total deposits		2,285,550			2,289,702			2,201,639			2,165,777			2,169,746
Accrued interest payable		975			1,036			1,139			1,415			1,587
Reserve for unfunded commitments		3,175			3,615			2,555			2,590			2,550
Other liabilities		37,340			35,122			32,449			30,538			29,675
Other borrowings		8,125			9,197			9,264			60,831			69,074
Junior subordinated debt		41,238			41,238			41,238			41,238			41,238
Total liabilities		2,376,403			2,379,910			2,288,284			2,302,389			2,313,870
Total shareholders’ equity		236,030			229,359			227,197			223,229			219,038
Accumulated other comprehensive gain		1,538			2,159			3,635			3,537			3,658
Average loans		1,548,565			1,574,329			1,573,816			1,534,006			1,527,536
Average interest-earning assets		2,434,920			2,383,226			2,351,164			2,331,148			2,334,842
Average total assets		2,609,794			2,565,307			2,519,259			2,509,099			2,514,541
Average deposits		2,287,539			2,247,776			2,174,085			2,148,964			2,149,212
Average total equity	$	233,679		$	230,296		$	226,857		$	223,028		$	220,366
Total risk based capital ratio		15.2	%		14.5	%		14.4	%		14.3	%		14.3	%
Tier 1 capital ratio		13.9	%		13.3	%		13.1	%		13.0	%		13.0	%
Tier 1 leverage ratio		9.9	%		9.8	%		9.9	%		9.7	%		9.5	%
Tangible capital ratio		8.5	%		8.2	%		8.4	%		8.2	%		8.0	%