TCBK TriCo Bancshares

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):

April 29, 2009

TriCo Bancshares
(Exact name of registrant as specified in its charter)

 California 0-10661 94-2792841
------------------------ --------------- --------------------
 (State or other (Commission File No.) (I.R.S. Employer
 jurisdiction of Identification No.)

incorporation or organization)

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))

99.1 Press release dated April 29, 2009

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: April 29, 2009 By: /s/Thomas J. Reddish
 ---------------------
 Thomas J. Reddish, Executive Vice President and
 Chief Financial Officer (Principal Financial
 and Accounting Officer)

INDEX TO EXHIBITS

Exhibit No. Description
---------- -----------
 99.1 Press release dated April 29, 2009

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

TRICO BANCSHARES ANNOUNCES QUARTERLY EARNINGS

CHICO, Calif. - (April 29, 2009) - TriCo Bancshares (NASDAQ: TCBK) (the "Company"), parent company of Tri Counties Bank, today announced quarterly earnings of $2,882,000 for the quarter ended March 31, 2009. This represents a decrease of $1,166,000 (28.8%) when compared with earnings of $4,048,000 for the quarter ended March 31, 2008. Diluted earnings per share for the quarter ended March 31, 2009 decreased 28.0% to $0.18 compared to $0.25 for the quarter ended March 31, 2008. Total assets of the Company increased $79,002,000 (4.0%) to $2,078,352,000 at March 31, 2009 from $1,999,350,000 at March 31, 2008. Total loans of the Company increased $19,012,000 (1.2%) to $1,566,956,000 at March 31, 2009 from $1,547,944,000 at March 31, 2008. Total deposits of the Company increased $198,231,000 (13.0%) to $1,726,706,000 at March 31, 2009 from $1,528,475,000 at March 31, 2008.

The decrease in earnings from the prior year quarter was primarily due to a $3,700,000 (90%) increase in the provision for loan losses to $7,800,000 from $4,100,000 that was partially offset by a $1,633,000 (7.6%) increase in net interest income to $22,998,000 in the quarter ended March 31, 2009 from $21,365,000 in the quarter ended March 31, 2008.

The increase in the provision for loan losses was primarily due to higher net loan charge-offs, increased non-performing loans and downgrades in loan classifications during the first quarter of 2009 compared to the first quarter of 2008. During the first quarter of 2009, the Company recorded $2,616,000 of net loan charge-offs versus $2,048,000 of net loan charge-offs in the first quarter of 2008. The $568,000 (27.7%) increase in net loan charge-offs was principally related to home equity lines of credit and small business loans that were partially offset by reduced net charge-offs of residential construction loans when compared to the year-ago quarter. Non-performing loans, defined as non-accruing loans and accruing loans delinquent 90 days or more, net of government guarantees were $34,360,000, $27,525,000 and $9,850,000 at March 31, 2009, December 31, 2008 and March 31, 2008, respectively.

Net interest income on a fully tax-equivalent (FTE) basis during the first quarter of 2009 increased $1,605,000 (7.5%) from the same period in 2008 to $23,151,000. The increase in net interest income (FTE) was due to a 0.17% increase in net interest margin (FTE) to 4.91% and a $69,909,000 (3.9%) increase in average balances of interest-earning assets to $1,887,121,000. The increase in net interest margin was mainly due to rate floors on most of the Company's adjustable rate loans that caused decreases in rates paid for interest-bearing liabilities to exceed decreases in rates earned on interest-earning assets.

Noninterest income for the first quarter of 2009 decreased $235,000 (3.4%) from the first quarter of 2008 due primarily to a $396,000 gain from the Company's membership in VISA, Inc. and VISA's initial public offering (IPO) in March 2008, and a $253,000 (6.6%) decrease in service charges on deposit accounts to $3,585,000 that were partially offset by a $383,000 (148%) increase in gain on sale of loans and a $167,000 improvement in change in value of mortgage servicing rights over the year-ago quarter. The decrease in service charges on deposit accounts is due to reduced non-sufficient funds fees as customers reduce their buying due to current economic conditions. These same economic conditions have resulted in lower mortgage rates that have increased refinance activity and improved gain on sale of loans for the Company. The following table summarizes the components of noninterest income for the periods indicated (in thousands):

 Three months ended March 31,
 ----------------------------
 2009 2008
 ----------------------------
Service charges on deposit accounts $3,585 $3,838
ATM fees and interchange 1,098 1,079
Other service fees 542 551
Change in value of mortgage servicing rights (173) (340)
Gain on sale of loans 641 258
Commissions on sale of
 nondeposit investment products 489 420
Increase in cash value of life insurance 280 360
Gain from VISA IPO - 396
Other noninterest income 153 288
 ----------------------------
Total noninterest income $6,615 $6,850
 ============================

Noninterest expense for the first quarter of 2009 decreased $372,000 (2.1%) compared to the first quarter of 2008. Salaries and benefits expense increased $309,000 (3.3%) to $9,789,000. The increase in salaries and benefits expense was mainly due to annual salary increases. Provision for losses - unfunded commitments decreased $650,000 (79%) to $175,000 for the quarter ended March 31, 2009 due primarily to estimated losses related to home equity lines of credit and construction loans that were recognized in the first quarter of 2008. The components of noninterest expense were as follows (in thousands):

 Three months ended March 31,
 ----------------------------
 2009 2008
 ----------------------------
Base salaries, net of
 deferred loan origination costs $6,576 $6,333
Incentive compensation 588 560
Benefits and other compensation costs 2,625 2,587
 ----------------------------
 Total salaries and benefits expense 9,789 9,480
 ----------------------------
Occupancy 1,235 1,188
Equipment 917 982
Provision for losses - unfunded commitments 175 825
Data processing and software 618 615
Telecommunications 332 597
ATM network charges 516 494
Professional fees 311 493
Advertising and marketing 398 319
Postage 279 282
Courier service 173 263
Intangible amortization 134 123
Operational losses 37 113
Provision for OREO losses 162 -
Assessments 302 82
Other 1,823 1,717
 ---------------------------
 Total other noninterest expense 7,412 8,093
 ---------------------------
 Total noninterest expense $17,201 $17,573
 ===========================

Richard Smith, President and Chief Executive Officer commented, "Our March 31, 2009 financial statements reflect that while the bank continues to produce strong net interest and non interest revenues, we continue to increase our provision for loan losses resulting in lower earnings per share as this long and deep US recession continues. During the quarter we continued to see rising levels of unemployment throughout California, reduced spending by consumers and businesses and declining real estate values resulting in additional write-downs and a continued decline in economic activity in our service area. Despite these challenging times, our core earnings allowed us to increase our loan loss reserves and increase our already strong capital position during the quarter. We also continued to see strong growth in bank deposits as total deposits increased $198,231,000 from March 31, 2008 to March 31, 2009. This strong growth in deposits provides us with the funding to meet the lending needs of the markets we serve."

The Company adopted a stock repurchase plan on August 21, 2007, for the repurchase of up to 500,000 shares of the Company's common stock from time to time as market conditions allow. The 500,000 shares authorized for repurchase under this plan represented approximately 3.2% of the Company's approximately 15,815,000 common shares outstanding as of August 21, 2007. This plan has no stated expiration date for the repurchases. As of March 31, 2009, the Company had repurchased 166,600 shares under this plan, which left 333,400 shares available for repurchase under the plan.

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, 2008. 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 34-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.

 TRICO BANCSHARES - CONSOLIDATED FINANCIAL DATA
 (Unaudited. Dollars in thousands, except share data)
 Three months ended
 --------------------------------------------------------------------------------
 March 31, December 31, September 30, June 30, March 31,
 2009 2008 2008 2008 2008
 ================================================================================
Statement of Income Data
Interest income $28,882 $29,679 $29,971 $30,332 $31,130
Interest expense 5,884 7,064 7,252 7,471 9,765
Net interest income 22,998 22,615 22,719 22,861 21,365
Provision for loan losses 7,800 5,450 2,600 8,800 4,100
Noninterest income:
 Service charges and fees 5,052 4,377 5,224 5,826 5,128
 Other income 1,563 1,788 1,568 1,454 1,722
Total noninterest income 6,615 6,165 6,792 7,280 6,850
Noninterest expense:
 Base salaries net of deferred
 loan origination costs 6,576 6,394 6,331 6,316 6,333
 Incentive compensation expense 588 794 675 830 560
 Employee benefits and other
 compensation expense 2,625 2,368 2,425 2,499 2,587
 Total salaries and benefits expense 9,789 9,556 9,431 9,645 9,480
 Intangible amortization 134 135 133 133 122
 Provision for losses -
 unfunded commitments 175 (800) (100) 550 825
 Other expense 7,103 7,841 7,125 7,516 7,146
Total noninterest expense 17,201 16,732 16,589 17,844 17,573
Income before taxes 4,612 6,598 10,322 3,497 6,542
Net income $2,882 $4,241 $6,235 $2,274 $4,048
Share Data
Basic earnings per share $0.18 $0.27 $0.40 $0.14 $0.26
Diluted earnings per share 0.18 0.26 0.39 0.14 0.25
Book value per common share 12.71 12.56 12.14 11.86 12.02
Tangible book value per common share $11.69 $11.54 $11.10 $10.81 $10.97
Shares outstanding 15,782,753 15,756,101 15,744,881 15,744,881 15,744,950
Weighted average shares 15,774,624 15,750,857 15,744,881 15,744,881 15,842,085
Weighted average diluted shares 16,019,488 16,068,456 15,951,668 15,953,288 16,081,722
Credit Quality
Non-performing loans, net of
 government agency guarantees $34,360 $27,525 $17,041 $14,808 $9,850
Foreclosed assets, net of allowance 2,407 1,185 1,178 1,178 836
Loans charged-off 3,001 2,780 2,578 4,176 2,385
Loans recovered $385 $332 $285 $274 $337
Allowance for losses to total loans(1) 2.27% 1.90% 1.79% 1.80% 1.44%
Allowance for losses to NPLs(1) 103% 110% 164% 187% 226%
Allowance for losses to NPAs(1) 97% 105% 153% 174% 209%
Selected Financial Ratios
Return on average total assets 0.56% 0.85% 1.26% 0.46% 0.81%
Return on average equity 5.70% 8.66% 13.04% 4.74% 8.37%
Average yield on loans 6.52% 6.73% 6.92% 6.99% 7.22%
Average yield on interest-earning assets 6.15% 6.48% 6.68% 6.71% 6.80%
Average rate on interest-bearing liabilities 1.63% 2.07% 2.06% 2.11% 2.78%
Net interest margin (fully tax-equivalent) 4.91% 4.95% 5.07% 5.06% 4.74%
Total risk based capital ratio 12.7% 12.4% 12.4% 12.3% 12.1%
Tier 1 Capital ratio 11.4% 11.2% 11.1% 11.0% 10.9%
(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
 --------------------------------------------------------------------------------
 March 31, December 31, September 30, June 30, March 31,
 2009 2008 2008 2008 2008
 ================================================================================
Balance Sheet Data
Cash and due from banks $137,241 $86,355 $67,300 $76,658 $74,713
Federal funds sold - - - - -
Securities, available-for-sale 279,122 266,561 241,900 253,129 272,276
Federal Home Loan Bank Stock 9,235 9,235 9,147 9,010 8,885
Loans
 Commercial loans 169,765 189,645 189,837 178,104 157,832
 Consumer loans 499,168 514,448 513,132 518,200 525,065
 Real estate mortgage loans 813,889 802,527 770,553 751,651 729,704
 Real estate construction loans 84,134 84,229 89,714 95,369 135,343
Total loans, gross 1,566,956 1,590,849 1,563,236 1,543,324 1,547,944
Allowance for loan losses (32,774) (27,590) (24,588) (24,281) (19,383)
Premises and equipment 18,537 18,841 19,094 19,580 20,069
Cash value of life insurance 47,095 46,815 46,061 45,701 45,341
Goodwill 15,519 15,519 15,519 15,519 15,519
Intangible assets 519 653 786 920 1,053
Other assets 36,902 35,952 38,012 40,930 32,933
Total assets 2,078,352 2,043,190 1,976,467 1,980,490 1,999,350
Deposits
 Noninterest-bearing demand deposits 371,639 401,247 334,015 347,336 358,684
 Interest-bearing demand deposits 269,807 241,560 228,441 215,530 216,478
 Savings deposits 426,001 380,799 374,640 382,918 398,763
 Time certificates 659,259 645,664 626,745 565,269 554,550
Total deposits 1,726,706 1,669,270 1,563,841 1,511,053 1,528,475
Federal funds purchased - - 67,000 123,750 102,300
Reserve for unfunded commitments 2,740 2,565 3,365 3,465 2,915
Other liabilities 31,041 30,180 30,048 29,250 31,355
Other borrowings 76,081 102,005 79,873 85,048 103,767
Junior subordinated debt 41,238 41,238 41,238 41,238 41,238
Total liabilities 1,877,806 1,845,258 1,785,365 1,793,804 1,810,050
Total shareholders' equity 200,546 197,932 191,102 186,686 189,300
Accumulated other
 comprehensive gain (loss) 3,474 2,056 (2,455) (2,980) 25
Average loans 1,566,350 1,565,343 1,549,009 1,546,257 1,535,357
Average interest-earning assets 1,887,121 1,840,915 1,806,010 1,819,222 1,817,212
Average total assets 2,049,193 1,995,239 1,974,392 1,986,674 1,988,666
Average deposits 1,688,704 1,625,574 1,545,435 1,507,252 1,511,604
Average total equity $202,126 $195,828 $191,211 $192,005 $193,449

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