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):

October 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))

On October 29, 2009, TriCo Bancshares announced its quarterly earnings for the period ended September 30, 2009. A copy of the press release is attached as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.

99.1 Press release dated October 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: October 29, 2009 By:/s/Thomas J. Reddish
 --------------------
 Thomas J. Reddish, Executive Vice President
 and Chief Financial Officer

INDEX TO EXHIBITS

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

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

TRICO BANCSHARES ANNOUNCES QUARTERLY EARNINGS

CHICO, Calif. - (October 29, 2009) - TriCo Bancshares (NASDAQ: TCBK), parent company of Tri Counties Bank, today announced quarterly earnings of $2,255,000 for the quarter ended September 30, 2009. This represents a 63.8% decrease when compared with earnings of $6,235,000 for the quarter ended September 30, 2008. Diluted earnings per share for the quarter ended September 30, 2009 decreased 64.1% to $0.14 from $0.39 for the quarter ended September 30, 2008. The decrease in earnings from the prior year quarter was primarily due to the Company's decision to increase by $5,400,000 the provision for loan losses to $8,000,000 for the quarter ended September 30, 2009.

Total assets of the Company increased $119,199,000 (6.0%) to $2,095,666,000 at September 30, 2009 from $1,976,467,000 at September 30, 2008. Total loans of the Company decreased $32,024,000 (2.0%) to $1,531,212,000 at September 30, 2009 from $1,563,236,000 at September 30, 2008. Total deposits of the Company increased $188,054,000 (12.0%) to $1,751,895,000 at September 30, 2009 from $1,563,841,000 at September 30, 2008. Diluted earnings per share for the nine months ended September 30, 2009 and 2008 were $0.48 and $0.78, respectively, on earnings of $7,649,000 and $12,557,000, respectively.

Net interest income on a fully tax equivalent basis (FTE) increased $368,000 (1.6%) to $23,257,000 during the third quarter of 2009 from the same period in 2008. The increase in net interest income (FTE) was due to a $163,033,000 (9.0%) increase in average balances of interest-earning assets to $1,969,043,000 that was partially offset by a 0.35% decrease in net interest margin (FTE) to 4.72% from the quarter ended September 30, 2008. The decrease in margin was mainly due to increased balances of interest-earning cash at the Federal Reserve Bank.

The Company provided $8,000,000 for loan losses in the third quarter of 2009 versus $2,600,000 in the third quarter of 2008. In the third quarter of 2009, the Company recorded $7,073,000 of net loan charge-offs versus $2,293,000 of net loan charge-offs in the third quarter of 2008. Included in the $7,073,000 of net loan charge-offs during the third quarter of 2009 were $2,293,000 on residential construction, $2,095,000 on home equity lines and loans, $1,488,000 on commercial (non-real estate), and $855,000 on auto indirect loans.

At September 30, 2009, the sum of the Company's allowance for loan losses of $34,551,000 and the reserve for unfunded commitments of $3,640,000 represented 82% of non-performing loans net of government agency guarantees. Non-performing loans, defined as non-accruing loans and accruing loans delinquent 90 days or more, net of government guarantees at September 30, 2009 increased $3,234,000 (7.5%) to $46,607,000 from $43,373,000 at June 30, 2009.

Noninterest income for the third quarter of 2009 increased $1,001,000 (14.7%) from the third quarter of 2008, mainly due to a $864,000 (253%) increase in gain on sale of loans to $1,205,000. Also contributing to the increase in noninterest income was a $127,000 (3.1%) increase in service charges on deposit accounts to $4,207,000, a $123,000 (10.6%) increase in ATM fees and interchange revenue to $1,287,000, and a $155,000 (27.1%) increase in the change in value of mortgage servicing rights to ($416,000). These increases were offset by a decrease of $214,000 (36.0%) in commission on sale of nondeposit investment products to $380,000. The increases in service charges on deposit accounts and ATM fees and interchange revenue were primarily due to increased numbers of customers. The increase in gain on sale of loans is primarily due to increased refinancing activity during the quarter. The following table summarizes the components of noninterest income for the quarters ended September 30, 2009 and 2008 (dollars in thousands).

 Three months ended
 September 30,
 --------------------
 2009 2008
 --------------------
 Service charges on deposit accounts $4,207 $4,080
 ATM fees and interchange revenue 1,287 1,164
 Other service fees 567 551
 Change in value of mortgage servicing rights (416) (571)
 Gain on sale of loans 1,205 341
 Commissions on sale of nondeposit investment products 380 594
 Increase in cash value of life insurance 270 360
 Other noninterest income 293 273
 -------------------
 Total noninterest income $7,793 $6,792
 ====================

Noninterest expense for the third quarter of 2009 increased $2,788,000 (16.8%)

compared to the third quarter of 2008. Salaries and benefits expense increased $832,000 (8.8%) to $10,263,000 mainly due to annual salary increases and increased incentive compensation expense related to increased production of sold loans. Other noninterest expense increased $1,956,000 (27.3%) primarily due to a $579,000 (491%) increase in assessments and a $600,000 increase in provision for losses on unfunded commitments. The following table summarizes the components of noninterest expense for the quarters ended September 30, 2009 and 2008 (dollars in thousands).

 Three months ended
 September 30,
 --------------------
 2009 2008
 --------------------

Base salaries, net of deferred loan origination costs $6,827 $6,331
Incentive compensation 980 675
Benefits and other compensation costs 2,456 2,425
 -------------------
Total salaries and benefits expense 10,263 9,431
 -------------------
Occupancy 1,316 1,289
Equipment 953 1,017
Data processing and software 655 600
ATM network charges 642 506
Advertising and marketing 558 451
Telecommunications 428 402
Professional fees 478 300
Courier service 189 258
Postage 258 185
Intangible amortization 65 133
Assessments 697 118
Operational losses 97 81
Provisions for losses - unfunded commitments 500 (100)
Other 2,278 1,918
 -------------------
Total other noninterest expense 9,114 7,158
 -------------------
Total noninterest expense $19,377 $16,589
 ===================
Average full time equivalent staff 645 668
Noninterest expense to revenue (FTE) 62.41% 58.01%

As of September 30, 2009, the Company had repurchased 166,600 shares of its common stock under its stock repurchase plan announced on August 21, 2007, which left 333,400 shares available for repurchase under the plan.

Richard Smith, President and Chief Executive Officer commented, "While diluted earnings per share were much lower than the prior year's quarter due to increased provisioning for loan losses, total bank revenues exceeded the prior year's levels. This increasing revenue stream provides the bank with the earnings necessary to increase loan loss reserves, increase our capital levels, pay increased premiums for deposit insurance and remain profitable during these challenging economic times." Smith added, "Our levels of liquidity, capital and reserves for loan losses remain strong as we progress through this deep recessionary period."

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. It operates 32 traditional branch locations and 26 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 66 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 at http://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,
 2009 2009 2009 2008 2008
 ============================================================================
Statement of Income Data
Interest income $27,889 $28,432 $28,882 $29,679 $29,971
Interest expense 4,784 5,286 5,884 7,064 7,252
Net interest income 23,105 23,146 22,998 22,615 22,719
Provision for loan losses 8,000 7,850 7,800 5,450 2,600
Noninterest income:
 Service charges and fees 5,645 6,182 5,052 4,377 5,224
 Other income 2,148 1,814 1,563 1,788 1,568
Total noninterest income 7,793 7,996 6,615 6,165 6,792
Noninterest expense:
 Base salaries net of deferred
 loan origination costs 6,827 6,568 6,576 6,394 6,331
 Incentive compensation expense 980 1,024 588 794 675
 Employee benefits and other
 compensation expense 2,456 2,477 2,625 2,368 2,425
 Total salaries and benefits expense 10,263 10,069 9,789 9,556 9,431
 Intangible amortization 65 64 134 135 133
 Provision for losses -
 unfunded commitments 500 400 175 (800) (100)
 Other expense 8,549 8,811 7,103 7,841 7,125
Total noninterest expense 19,377 19,344 17,201 16,732 16,589
Income before taxes 3,521 3,948 4,612 6,598 10,322
Net income $2,255 $2,512 $2,882 $4,241 $6,235
Share Data
Basic earnings per share $0.14 $0.16 $0.18 $0.27 $0.40
Diluted earnings per share 0.14 0.16 0.18 0.26 0.39
Book value per common share 12.79 12.67 12.71 12.56 12.14
Tangible book value per common share $11.78 $11.66 $11.69 $11.54 $11.10
Shares outstanding 15,787,753 15,782,753 15,782,753 15,756,101 15,744,881
Weighted average shares 15,787,264 15,782,753 15,774,624 15,750,857 15,744,881
Weighted average diluted shares 16,015,952 15,997,437 16,019,488 16,068,456 15,951,668
Credit Quality
Non-performing loans, net of
 government agency guarantees $46,607 $43,373 $34,360 $27,525 $17,041
Foreclosed assets, net of allowance 2,372 2,622 2,407 1,185 1,178
Loans charged-off 7,471 7,308 3,001 2,780 2,578
Loans recovered $398 $308 $385 $332 $285
Allowance for losses to total loans(1) 2.49% 2.37% 2.27% 1.90% 1.79%
Allowance for losses to NPLs(1) 82% 85% 103% 110% 164%
Allowance for losses to NPAs(1) 78% 80% 97% 105% 153%
Selected Financial Ratios
Return on average total assets 0.43% 0.48% 0.56% 0.85% 1.26%
Return on average equity 4.43% 4.94% 5.70% 8.66% 13.04%
Average yield on loans 6.48% 6.48% 6.52% 6.73% 6.92%
Average yield on interest-earning assets 5.70% 5.91% 6.15% 6.48% 6.68%
Average rate on interest-bearing liabilities 1.27% 1.42% 1.63% 2.07% 2.06%
Net interest margin (fully tax-equivalent) 4.72% 4.82% 4.91% 4.95% 5.07%
Total risk based capital ratio 13.2% 12.9% 12.7% 12.4% 12.4%
Tier 1 capital ratio 11.9% 11.6% 11.4% 11.2% 11.1%
(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
 -----------------------------------------------------------------------------
 September 30, June 30, March 31 December 31 September 30,
 2009 2009 2009 2008 2008
 =============================================================================
Balance Sheet Data
Cash and due from banks $234,570 $182,923 $137,241 $86,355 $67,300
Securities, available-for-sale 230,962 252,104 279,122 266,561 241,900
Federal Home Loan Bank Stock 9,274 9,274 9,235 9,235 9,147
Loans
 Commercial loans 171,583 172,732 169,765 189,645 189,837
 Consumer loans 473,411 486,548 499,168 514,448 513,132
 Real estate mortgage loans 814,132 813,898 813,889 802,527 770,553
 Real estate construction loans 72,086 79,057 84,134 84,229 89,714
Total loans, gross 1,531,212 1,552,235 1,566,956 1,590,849 1,563,236
Allowance for loan losses (34,551) (33,624) (32,774) (27,590) (24,588)
Premises and equipment 18,102 18,208 18,537 18,841 19,094
Cash value of life insurance 47,635 47,365 47,095 46,815 46,061
Goodwill 15,519 15,519 15,519 15,519 15,519
Intangible assets 389 454 519 653 786
Other assets 42,554 43,383 36,902 35,952 38,012
Total assets 2,095,666 2,087,841 2,078,352 2,043,190 1,976,467
Deposits
 Noninterest-bearing demand deposits 349,949 358,618 371,639 401,247 334,015
 Interest-bearing demand deposits 314,160 291,641 269,807 241,560 228,441
 Savings deposits 473,915 431,424 426,001 380,799 374,640
 Time certificates 613,871 655,702 659,259 645,664 626,745
Total deposits 1,751,895 1,737,385 1,726,706 1,669,270 1,563,841
Federal funds purchased - - - - 67,000
Reserve for unfunded commitments 3,640 3,140 2,740 2,565 3,365
Other liabilities 30,759 32,201 31,041 30,180 30,048
Other borrowings 66,197 73,898 76,081 102,005 79,873
Junior subordinated debt 41,238 41,238 41,238 41,238 41,238
Total liabilities 1,893,729 1,887,862 1,877,806 1,845,258 1,785,365
Total shareholders' equity 201,937 199,979 200,546 197,932 191,102
Accumulated other
 comprehensive gain (loss) 3,934 2,322 3,474 2,056 (2,455)
Average loans 1,538,239 1,555,778 1,566,350 1,565,343 1,549,009
Average interest-earning assets 1,969,043 1,933,633 1,887,121 1,840,915 1,806,010
Average total assets 2,099,053 2,088,875 2,049,193 1,995,239 1,974,392
Average deposits 1,744,336 1,735,434 1,688,704 1,625,574 1,545,435
Average total equity $203,452 $203,596 $202,126 $195,828 $191,211

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