TCBK TriCo Bancshares

INDEX TO EXHIBITS

Exhibit No. Description
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 99.1 Press release dated January 30, 2008

PRESS RELEASE Contact: Thomas J. Reddish
For Immediate Release Executive Vice President & CFO
 (530) 898-0300

TRICO BANCSHARES ANNOUNCES ANNUAL AND QUARTERLY EARNINGS FOR THE PERIODS ENDED
DECEMBER 31, 2007

CHICO, Calif. - (January 30, 2008) - TriCo Bancshares (NASDAQ: TCBK), parent company of Tri Counties Bank, today announced annual earnings of $25,693,000 for the year ended December 31, 2007. This represents a 4.2% decrease when compared with earnings of $26,830,000 for the year ended December 31, 2006. Diluted earnings per share for the year ended December 31, 2007 decreased 4.3% to $1.57 from $1.64 for the year ended December 31, 2006. Total assets of the Company increased $61 million (3.2%) to $1.981 billion at December 31, 2007 versus $1.920 billion at December 31, 2006. Total loans of the Company increased $42 million (2.8%) to $1.552 billion at December 31, 2007 versus $1.510 billion at December 31, 2006. Total deposits of the Company decreased $54 million (3.4%) to $1.545 billion at December 31, 2007 versus $1.599 billion at December 31, 2006.

Net income for the quarter ended December 31, 2007 decreased 17.6% to $5,701,000 from $6,918,000 in the quarter ended December 31, 2006. Diluted earnings per share decreased 16.7% to $0.35 in the quarter ended December 31, 2007 from $0.42 in the quarter ended December 31, 2006.

The decrease in earnings for the quarter ended December 31, 2007 over the year-ago quarter was due to a $414,000 (1.9%) decrease in net interest income to $21,310,000, a $1,350,000 increase in provision for loan losses from $0 in the year-ago quarter, and a $749,000 (4.4%) increase in noninterest expense to $17,751,000, which were partially offset by a $487,000 (7.3%) increase in noninterest income to $7,114,000 from the year-ago quarter.

The $414,000 decrease in net interest income was due to a 28 basis point decrease in fully tax-equivalent net interest margin to 4.85% during the quarter ended December 31, 2007 versus 5.13% during the quarter ended December 31, 2006, which was partially offset by a $65 million (3.8%) increase in average balance of interest-earning assets when compared to the year-ago quarter. The fully tax-equivalent net interest margin was 5.12% during the quarter ended September 30, 2007. The decrease in fully tax-equivalent net interest margin to 4.85% during the quarter ended December 31, 2007 was due to many factors including a 100 basis point decrease in the prime lending rate between August 31, 2007 and December 31, 2007 which directly impacted the interest earned on the Company's variable rate loans tied to the prime lending rate, a lag in the downward repricing of interest-bearing liabilities compared to interest-earning assets, a change in the mix of interest-bearing liabilities towards a higher percentage of certificates of deposit and other borrowings, and credit and liquidity troubles at some of our competitors which caused them to offer exceptionally high deposit rates which in turn kept deposit rates for the entire industry elevated more than they possibly otherwise would be.

The provision for loan loss was $1,350,000 and $0 during the quarters ended December 31, 2007 and December 31, 2006, respectively. Net loan charge-offs were $1,158,000 during the quarter ended December 31, 2007 compared to $79,000 during the quarter ended December 31, 2006. The $1,158,000 of net loan charge-offs during the quarter ended December 31, 2007 were comprised of $556,000 of indirect auto loans, $436,000 of home equity lines of credit and loans, $84,000 of small business loans, and $82,000 of other loans. Nonperforming loans, net of government agency guarantees, were $7,511,000 at December 31, 2007 compared to $4,512,000 at December 31, 2006. The Company's allowance for losses, which consists of the allowance for loan losses and the reserve for unfunded commitments, was $19,421,000 or 1.25% of total loans outstanding and 259% of nonperforming loans at December 31, 2007 compared to $18,763,000 or 1.24% of total loans outstanding and 416% of nonperforming loans at December 31, 2006.

The $749,000 (4.4%) increase in noninterest expense during the quarter ended December 31, 2007 compared to the year-ago quarter was due to a $325,000 (3.5%) increase in salaries and benefits expense to $9,730,000 and a $602,000 (8.3%) increase in other noninterest expenses to $7,849,000. The increase in salaries and benefits expense was due to increases in base salaries and benefits expenses that were partially offset by a decrease in incentive compensation expense. The increase in other noninterest expense was primarily due to increased occupancy, equipment, and marketing expense that were partially offset by reduced intangible amortization.

The $487,000 (7.3%) increase in noninterest income was primarily due to a $606,000 (12.3%) increase in service charges and fees to $5,546,000 during the quarter ended December 31, 2007 from the quarter ended December 31, 2006. Other noninterest income decreased $119,000 (7.1%) to $1,568,000 due mainly to a $314,000 (58%) decrease in income from cash value of life insurance to $230,000, and a $111,000 (31.8%) decrease in gain on sale of loans to $238,000, that were partially offset by a $281,000 (67.4%) increase in commission on sale of nondeposit investment products to $698,000.

As of December 31, 2007, the Company had not repurchased any shares of its common stock under its stock repurchase plan adopted on August 21, 2007, which left 500,000 shares available for repurchase under the plan.

Richard Smith, President and Chief Executive Officer commented, "Earnings for the fourth quarter of 2007 proved to be very challenging for the banking industry as well as our bank. The difference is that our lower earnings in the fourth quarter are based more upon lower asset yields as a result of a lower prime rate and liabilities that could not re-price quickly due to industry liquidity challenges. Our earnings results were only minimally affected by loan losses as our loan portfolio has held up well during this slowing economic cycle."

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 32-year history in the banking industry. Tri Counties Bank operates 32 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 64 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.