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 29, 2004
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
Item 7(c): Exhibits
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99.1 Press release dated January 29, 2004
Item 12: Results of Operations and Financial Condition
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On January 29, 2004 TriCo Bancshares announced their annual and quarterly
earnings for the periods ended December 31, 2003. A copy of the press release is
attached as Exhibit 99.1 to this Form 8-K and is incorporated herein by
reference.
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: January 29, 2004 By: /s/ Thomas J. Reddish
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Thomas J. Reddish, 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 29, 2004
PRESS RELEASE Contact: Thomas J. Reddish
Senior Vice President & CFO
For Immediate Release (530) 898-0300
TRICO BANCSHARES ANNOUNCES RECORD ANNUAL AND QUARTERLY EARNINGS
FOR THE PERIODS ENDED DECEMBER 31, 2003
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Chico, CA - January 29, 2004. TriCo Bancshares (NASDAQ: TCBK), parent
company of Tri Counties Bank, today announced record annual earnings of
$16,888,000 for the year ended December 31, 2003. This represents a 20.0%
increase when compared with earnings of $14,069,000 for the year ended December
31, 2002. Diluted earnings per share for the year ended December 31, 2003
increased 9.1% to $2.14 from $1.96 for the year ended December 31, 2002. Total
assets of the Company increased $324 million (28.3%) to $1.469 billion at
December 31, 2003 versus $1.145 billion at December 31, 2002. Total deposits of
the Company increased $232 million (23.0%) to $1.237 billion at December 31,
2003 versus $1.005 billion at December 31, 2002.
Included in the results for the year ended December 31, 2003 was the effect
of the Company's acquisition of North State National Bank on April 4, 2003. On
April 4, 2003, North State National Bank had assets of $140 million, loans
totaling $77 million, and deposits totaling $126 million. The Company issued
$13,090,057 in cash, 723,512 shares of TriCo common stock, and options to
purchase 79,587 TriCo common shares at an average exercise price of $6.22 per
share in exchange for all of the 1,234,375 common shares and options to purchase
79,937 common shares of North State National Bank outstanding as of April 4,
2003.
Net income for the quarter ended December 31, 2003 increased 25.0% to
$4,683,000 from $3,748,000 in the quarter ended December 31, 2002. Diluted
earnings per share increased 11.5% to $0.58 in the quarter ended December 31,
2003 from $0.52 in the quarter ended December 31, 2002.
Richard Smith, President and Chief Executive Officer commented, "We are
very pleased with the performance of our company in the quarter and year ended
December 31, 2003. We were able to increase quarterly and annual earnings per
share by 11.5% and 9.1%, respectively. In addition, we achieved these results
while opening branches in the Sacramento suburbs of Roseville and Folsom. These
new branches brought the total number of our branches to 45, and along with
significant growth at our existing branches, allowed us to internally grow loans
by over 31 percent during the year. Not only did we achieve significant growth
in earnings, assets and deposits, but we maintained a strong net interest margin
and dramatically improved our asset quality."
The increase in earnings for the quarter ended December 31, 2003 over the
year-ago quarter was due to a $4,147,000 (31.9%) increase in net interest income
to $17,130,000, which was partially offset by a $245,000 (4.0%) decrease in
noninterest income to $5,753,000, and a $1,986,000 (15.9%) increase in
noninterest expense to $14,459,000. The increase in net interest income was due
to the loan growth noted above, and an increase in fully tax-equivalent net
interest margin to 5.41% during the quarter ended December 31, 2003 versus 5.25%
in the year-ago quarter. The $245,000 decrease in noninterest income was mainly
due to a $607,000 (44%) decrease in gain on sale of loans to $780,000 that was
partially offset by increases in service charge and fee revenue. The decrease in
gain on sale of loans was due to the slowdown in the residential mortgage
refinance market during the second half of 2003. The increase in noninterest
expense was mainly due to the addition of a de-novo branch in Roseville, a
de-novo branch in Folsom, and a branch in Chico through the North State
acquisition, regular salary increases, and incentive compensation related to the
loan and deposit growth noted above.
Mr. Smith continued, "We will continue to differentiate ourselves from the
competition by offering high levels of service and convenience to our markets
with more branch locations, and extended weekday, weekend and holiday hours. We
currently anticipate that we will continue to grow within the Central Valley of
California as we maximize revenue growth and new customer opportunities within
this region. As always, we remain focused on shareholder value which we measure
primarily through earnings per share and growth in earnings per share."
As previously announced on July 31, 2003, the Company adopted a stock
repurchase plan for the repurchase of up to 250,000 shares of the Company's
common stock from time to time as market conditions allow. The 250,000 shares
authorized for repurchase under this plan represented approximately 3.2% of the
Company's approximately 7,852,000 common shares outstanding as of July 31, 2003.
This plan has no stated expiration date for the repurchases. As of December 31,
2003, the Company repurchased 27,500 common shares under this plan, of which
19,400 were repurchased during the quarter ended December 31, 2003.
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 28-year history in the banking industry. Tri
Counties Bank operates 33 traditional branch locations and 12 in-store branch
locations in 21 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 56 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.
63 Constitution Drive, Chico, California 95973
TRICO BANCSHARES - CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except per share data)
Three months ended
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December 31, September 30, June 30, March 31, December 31,
2003 2003 2003 2003 2002
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Statement of Income Data
Interest income $ 20,354 $ 19,105 $ 18,161 $ 16,349 $ 16,228
Interest expense 3,224 3,305 3,445 3,115 3,245
Net interest income 17,130 15,800 14,716 13,234 12,983
Provision for loan losses 800 150 150 150 800
Noninterest income:
Service charges and fees 3,939 3,117 3,985 3,500 3,651
Other income 1,814 2,089 2,569 1,896 2,347
Total noninterest income 5,753 5,206 6,554 5,396 5,998
Noninterest expense:
Salaries and benefits 7,741 7,460 7,636 6,877 6,434
Intangible amortization 330 325 324 228 228
Other expense 6,388 6,264 6,408 5,546 5,811
Total noninterest expense 14,459 14,049 14,368 12,651 12,473
Net income before taxes 7,624 6,807 6,752 5,829 5,708
Net income $ 4,683 $ 4,338 $ 4,254 $ 3,613 $ 3,748
Share Data
Basic earnings per share $ 0.60 $ 0.55 $ 0.55 $ 0.51 $ 0.53
Diluted earnings per share 0.58 0.54 0.53 0.50 0.52
Book value per common share $ 16.33 $ 15.91 $ 15.86 $ 14.39 $ 14.02
Shares outstanding 7,834,124 7,846,001 7,852,110 7,080,470 7,060,965
Weighted average shares 7,846,747 7,850,374 7,796,383 7,070,701 7,046,246
Weighted average diluted shares 8,148,446 8,094,964 8,021,229 7,250,178 7,211,705
Credit Quality
Non-performing loans, net of
government agency guarantees $ 4,394 $ 6,072 $ 20,539 $ 20,610 $ 8,180
Other real estate owned 932 1,545 1,551 1,608 932
Loans charged-off 859 551 2,063 280 870
Loans recovered $ 372 $ 406 $ 147 $ 46 $ 66
Allowance for loan losses to total loans 1.40% 1.45% 1.58% 2.06% 2.09%
Allowance for loan losses to NPLs 313% 222% 66% 69% 176%
Allowance for loan losses to NPAs 259% 177% 61% 64% 158%
Selected Financial Ratios
Return on average total assets 1.29% 1.25% 1.27% 1.26% 1.35%
Return on average equity 14.71% 14.09% 13.88% 14.29% 15.35%
Average yield on loans 7.17% 7.41% 7.34% 7.64% 7.75%
Average yield on earning assets 6.41% 6.32% 6.18% 6.36% 6.53%
Average rate on earning liabilities 1.26% 1.36% 1.45% 1.52% 1.65%
Net interest margin (fully tax-equivalent) 5.41% 5.24% 5.02% 5.17% 5.25%
Total risk based capital ratio 11.6% 11.7% 10.4% 11.6% 12.0%
Tier 1 Capital ratio 10.4% 10.6% 9.1% 10.4% 10.7%
TRICO BANCSHARES - CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except per share data)
Three months ended
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December 31, September 30, June 30, March 31, December 31,
2003 2003 2003 2003 2002
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Balance Sheet Data
Cash and due from banks $ 80,603 $ 66,747 $ 65,051 $ 58,925 $ 67,170
Fed funds sold 326 1,900 3,200 10,100 8,100
Securities, available-for-sale 316,436 350,941 354,040 354,007 338,024
Loans
Commercial loans 142,252 152,477 147,746 117,329 125,982
Consumer loans 319,029 297,186 237,704 210,633 201,858
Real estate mortgage loans 458,369 420,312 407,218 330,001 319,969
Real estate construction loans 61,591 60,066 59,622 35,810 39,713
Total loans, gross 981,241 930,041 852,290 693,773 687,522
Allowance for loan losses (13,773) (13,460) (13,455) (14,293) (14,377)
Premises and equipment 19,521 19,787 19,830 17,542 17,224
Cash value of life insurance 38,980 38,644 34,633 29,257 15,208
Intangible assets 21,604 21,992 22,189 3,815 4,043
Other assets 23,817 24,611 23,124 23,377 21,660
Total assets 1,468,755 1,441,203 1,360,902 1,176,503 1,144,574
Noninterest bearing demand deposits 298,462 267,148 260,861 226,373 232,499
Interest bearing demand deposits 220,875 211,219 204,538 188,575 182,816
Savings deposits 441,461 426,340 393,198 324,584 297,926
Time certificates 276,025 291,145 315,008 293,120 291,996
Total deposits 1,236,823 1,195,852 1,173,605 1,032,652 1,005,237
Fed funds purchased & repurchase agreements 39,500 55,700 17,400 - -
Other liabilities 20,966 21,312 22,425 19,044 17,399
Other borrowings 22,887 22,894 22,905 22,915 22,924
Junior subordinated debt 20,619 20,619 - - -
Total liabilities 1,340,795 1,316,377 1,236,335 1,074,611 1,045,560
Total shareholders' equity 127,960 124,826 124,567 101,892 99,014
Accumulated other
comprehensive income 1,814 1,223 3,433 2,688 2,303
Average loans 951,669 876,068 801,493 679,975 675,626
Average interest earning assets 1,285,905 1,226,453 1,194,618 1,048,286 1,013,175
Average total assets 1,447,137 1,384,672 1,339,107 1,149,759 1,112,660
Average deposits 1,216,223 1,185,059 1,146,211 1,003,853 970,666
Average total equity $ 127,374 $ 123,168 $ 122,567 $ 101,139 $ 97,684