<PAGE>
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): June 30, 1997
TEHAMA BANCORP
(Exact name of registrant as specified in its charter)
CALIFORNIA 333-23525 91-1775524
(State or other jurisdiction of (File Number) (IRS Employer Identification
incorporation) No.)
239 SOUTH MAIN STREET 96080
RED BLUFF, CALIFORNIA
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (916) 528-3000
This Form 8-K consists of 27 pages. The Exhibit Index is on Page 4.
<PAGE>
ITEM 1. CHANGES IN CONTROL OF THE REGISTRANT.
On June 30, 1997, the Registrant consummated the reorganization (the
"Reorganization") contemplated by the Plan of Reorganization and Merger
Agreement dated February 12, 1997 (the "Agreement"), by and among the
Registrant, Tehama Bank (the "Bank"), and Tehama Merger Corporation
("Subsidiary"), which was a wholly-owned subsidiary of the Registrant formed to
facilitate the Reorganization. A copy of the Agreement is filed herewith as
Exhibit 99.1 and incorporated in this item by reference.
Pursuant to the Agreement, the Bank was merged with the Subsidiary, with
the Bank as the surviving corporation (the "Merger") and each share of the
Bank's common stock outstanding immediately prior to the Merger was converted
into the one share of the Registrant's common stock. As a result of the Merger,
the Bank became the wholly-owned subsidiary of the Registrant, and the former
shareholders of the Bank became pro rata the shareholders of the Registrant. A
copy of the Bank's press release announcing the completion of the Reorganization
is filed herewith as Exhibit 99.2 and incorporated in this item by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) FINANCIAL STATEMENTS OF THE BANK.
(1) Audited balance sheets of Tehama Bank as of December 31, 1996 and
1995 and related audited statements of income, shareholders' equity and cash
flows for each of the three years in the period ended December 31,1996, the
notes thereto and related manually signed report of independent public
accountant, are filed herewith as Exhibit 99.3 and incorporated in this item by
reference.
(2) The Bank's Quarterly Report on Form 10-Q for the quarter ended
March 31, 1997, as filed with the Board of Governors of the Federal Reserve
System, is filed herewith as Exhibit 99.4 and incorporated in this item by
reference.
(b) PRO FORMA FINANCIAL INFORMATION.
Not applicable.
(c) EXHIBITS.
No. Identity
-- --------
99.1 Plan of Reorganization and Merger Agreement
99.2 Press Release
99.3 Audited Financial Statements (December 31, 1996) of Tehama
Bank
99.4 Tehama Bank Form 10-Q (March 31, 1997)
2
<PAGE>
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 hereunto duly authorized.
TEHAMA BANCORP
(Registrant)
Date: July 1 , 1997 By: /s/ William P. Ellison
----------------------------------------
William P. Ellison
President and Chief Executive Officer
3
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT INDEX
NO. IDENTITY PAGE NOS.
<S> <C> <C>
99.1 Plan of Reorganization and Merger Agreement
Incorporated by reference from Exhibit 2 to Registrant's
Registration Statement No. 333-23525 on Form S-4 filed
with the Commission on April 2, 1997.
99.2 Press Release 5
99.3 Audited Financial Statements (December 31, 1996) of Tehama Bank
Incorporated by reference from pages 2-29 of Exhibit 13 to
Registrant's Registration Statement No. 333-23525 on Form S-4
filed with the Commission on April 2, 1997.
99.4 Tehama Bank Form 10-Q (March 31, 1997) 6-27
</TABLE>
4
<PAGE>
Exhibit 99.2
PRESS RELEASE
JUNE 26, 1997
Contact: Frank Onions, Tehama Bank, (916) 528-3000
or Bill Ellison, Tehama Bank, (916) 528-3000
FOR IMMEDIATE RELEASE
TEHAMA BANK ANNOUNCES
FORMATION OF HOLDING COMPANY
William P. Ellison, President and Chief Executive Officer of Tehama Bank,
announced today that effective at the close of business June 30, 1997, Tehama
Bancorp, a newly-formed California corporation, became the holding company for
Tehama Bank. Mr. Ellison noted that in connection with the formation of the
holding company, each share of Common Stock of the Bank outstanding immediately
prior to such formation shall represent one share of Common Stock of the holding
company.
In making the announcement on behalf of the Bank's Board of Directors,
Mr. Ellison indicated that the Board believes that creation of the holding
company will enhance the ability of the Bank to compete with major banks in its
marketing area, many of which have been similarly reorganized, will provide a
broader range of business alternatives with respect to growth and access to
additional capital, and, in general, represents a further step toward
implementing the Bank's long-range strategic plans.
Effective with the Holding Company formation, Tehama Bancorp's stock
ticker symbol will be THMB. The new CUSIP number will be 879053 10 6.
Tehama Bank is an independent and locally owned state licensed bank with
full service offices in Red Bluff, Los Molinos, Chico, Orland and Willows.
The Bank also operates a Loan Production Office in Redding. The Bank's
deposits are insured by the Federal Deposit Insurance Corporation.
<PAGE>
BOARD OF GOVERNORS
OF THE FEDERAL RESERVE SYSTEM
WASHINGTON, D.C. 20551
-------------------------------------------------
FORM 10 - Q
Quarterly Report Pursuant to Section 13 or 15 (d) of
The Securities Exchange Act of 1934
For the Quarter Ended March 31, 1997 Commission File Number: NONE
--------------------------------------------------
TEHAMA BANK
(Exact Name of Registrant as Specified in its Charter)
California 680008340
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification NO)
239 South Main Street, Red Bluff, California 96080
(Address of Principal Executive Office) (Zip Code)
Registrant's Telephone Number, Including Area Code: (916) 528-3000
----------------------------------------------------
Securities Registered pursuant to Section 12 (b) of the Act:
Title of Each Class Name of Each Exchange on Which Registered
---------------------------------------------------------------
Securities Registered pursuant to Section 12 (g) of the Act:
Common Stock: No par Value; 1,610,940 Shares Outstanding March 31, 1997
-----------------------------------------------------------------------
(Title of Class)
----------------
Aggregate Market Value of the Voting Stock Held by Non-Affiliates: $14,498,460
-------------------------------------------
Indicate by check mark whether the registrant (1) filed all reports required to
be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES XXX NO
--- ---
<PAGE>
TEHAMA COUNTY BANK Call Date: 03/31/96 ST-BK: 1497 FFIEC 033
239 SO. MAIN STREET
RED BLUFF, CA 96080 Vendor ID: D CERT: 25594 Page RI- 1
Transit Number: 12114093 3
CONSOLIDATED REPORT OF INCOME
FOR THE PERIOD JANUARY 1, 1996 - MARCH 31, 1996
All Report of Income schedules are to be reported on a calendar year-to-date
basis in thousands of dollars.
SCHEDULE RI - INCOME STATEMENT
<TABLE>
<CAPTION>
I280 < -
Dollar Amounts in Thousands
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
1. Interest income:
a. Interest and fee income on Loans (1): RIAD
----
(1) Real estate Loans_____________________________________________________4246 . . 941 1.a.1
(2) Installment Loans_____________________________________________________4247 . . 651 1.a.2
(3) Credit cards and related plans________________________________________4248 . . 54 1.a.3
(4) Commercial (time and demand) and all other Loans______________________4249 . . 260 1.a.4
b. Income from Lease financing receivables:
(1) Taxable Leases________________________________________________________4505 . . 0 1.b.1
(2) Tax-exempt Leases_____________________________________________________4307 . . 12 1.b.2
c. Interest income on balances due from depository institutions (2)__________4115 . . 0 1.c
d. Interest and dividend income on securities:
(1) U.S. Treasury securities and U.S. Government agency and corporation
obligations_______________________________________________________________4027 . . 195 1.d.1
(2) Securities issued by states and political subdivisions in the U.S.:
(a) Taxable securities_______________________________________________4506 . . 0 1.d.2a
(b) Tax-exempt securities____________________________________________4507 . . 135 1.d.2b
(3) Other domestic debt securities________________________________________3657 . . 0 1.d.3
(4) Foreign debt securities_______________________________________________3658 . . 0 l.d.4
(5) Equity securities (including investments in mutual funds)_____________3659 . . 5 1.d.5
e. Interest income from trading assets_______________________________________4069 . . 0 1.e
f. Interest income on federal funds sold and securities purchased
under agreements to resell________________________________________________4020 . . 207 1.f
g. Total interest income (sum of items 1.a through 1.f)______________________4107 . . 2,460 1.g
</TABLE>
________________
(1) See instructions for loan classifications used in this schedule.
(2) Includes interest income on time certificates of deposit not held for
trading.
<PAGE>
TEHAMA COUNTY BANK Call Date: 03/31/96 ST-BK: 1497 FFIEC 033
239 SO. MAIN STREET
RED BLUFF, CA 96080 Vendor ID: D CERT: 25594 Page RI- 2
Transit Number: 12114093 4
SCHEDULE RI - CONTINUED
<TABLE>
<CAPTION>
Dollars Amounts in Thousands
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
2. Interest expense:
a. Interest on deposits:
(1) Transaction accounts (NOW accounts, ATS accounts, and RIAD Year-to-date
telephone and preauthorized transfer ----
accounts)_____________________________________________________________4508 . . 36 . . . . . . . . 2.a.1
(2) Nontransaction accounts:
(a) Money market deposit accounts (MMDAs)______________________________4509 . . 265 . . . . . . . . 2.a.2a
(b) Other savings deposits_____________________________________________4511 . . 73 . . . . . . . . 2.a.2b
(c) Time certificates of deposit of $100,000
or more____________________________________________________________4174 . . 146 . . . . . . . . 2.a.2c
(d) All other time deposits____________________________________________4512 . . 543 . . . . . . . . 2.a.2d
b. Expense of federal funds purchased and
securities sold under agreements to repurchase____________________________4180 . . 0 . . . . . . . . 2.b
c. Interest on demand notes issued to the U.S.
Treasury, trading liabilities, and on
other borrowed money______________________________________________________4185 . . 4 . . . . . . . 2.c
d. Interest on mortgage indebtedness and obligations
under capitalized Leases__________________________________________________4072 . . 0 . . . . . . . . 2.d
e. Interest on subordinated notes and debentures_____________________________4200 . . 0 . . . . . . . . 2.e
f. Total interest expense (sum of items 2.a through 2.e)_____________________4073 . . 1,067 . . . . . . . . 2.f
3. Net interest Income (item 1.g minus 2.f)______________________________________4074 . . . . . . . 1,393 3.
4. Provisions:
a. Provision for loan and lease losses_______________________________________4230 . . . . . . . 120 4.a
b. Provision for allocated transfer risk_____________________________________4243 . . . . . . . 0 4.b
5. Noninterest income:
a. Income from fiduciary activities__________________________________________4070 . . 0 . . . . . . . . 5.a
b. Service charges on deposit accounts_______________________________________4080 . . 87 . . . . . . . . 5.b
c. Trading revenue (must equal, Schedule RI, sum
of Memoradum items 8.a through 8.d)______________________________________A220 . . 0 . . . . . . . . 5.c
d. Other foreign transaction gains (losses)__________________________________4076 . . 0 . . . . . . . . 5.d
e. Not applicable.
f. Other noninterest income:
(1) Other fee income______________________________________________________5407 . . 324 . . . . . . . . 5.f.1
(2) ALL other noninterest income*_________________________________________5408 . . . . . 27 . . . . . . . . 5.f.2
g. Total noninterest income (sum of items 5.a
through 5.f.(2))__________________________________________________________4079 . . . . . . . 438 5.g
6. a. Realized gains (losses) on held-to-maturity
securities________________________________________________________________3521 . . . . . . . 0 6.a
b. Realized gains (losses) on available-for-sale
securities________________________________________________________________3196 . . . . . . . 0 6.b
7. Noninterest expense:
a. Salaries and employee benefits____________________________________________4135 . . 551 7.a
b. Expenses of premises and fixed assets (net of
rental income) (excluding salaries and employee
benefits and mortgage interest)___________________________________________4217 . . 112 7.b
c. Other noninterest expense*________________________________________________4092 . . 370 7.c
d. Total noninterest expense (sum of items 7.a
through 7.c)______________________________________________________________4093 . . . . . . . 1,033 7.d
8. Income (loss) before income taxes and extraordinary
items and other adjustments (item 3 plus or minus
items 4.a, 4.b, 5.g, 6.a, 6.b, and 7.d)_______________________________________4301 . . . . . . . 678 8.
9. Applicable income taxes (on item 8)___________________________________________4302 . . . . . . . 225 9.
10. Income (loss) before extraordinary items and other
adjustments (item 8 minus 9)__________________________________________________4300 . . . . . . . 453 10.
11. Extraordinary items and other adjustments:
a. Extraordinary items and other adjustments,
gross of income taxes*____________________________________________________4310 . . 0 . . . . . . . . 11.a
b. Applicable income taxes (on item 11.a)*___________________________________4315 . . 0 . . . . . . . . ll.b
c. Extraordinary items and other adjustments, net of
income taxes (item ll.a minus ll.b)_______________________________________4320 . . . . . . . 0 ll.c
2. Net income (loss) (sum of items 10 and 11.c)__________________________________4340 . . . . . . . 453 12.
</TABLE>
___________________
* Describe on Schedule RI-E - Explanations.
<PAGE>
TEHAMA COUNTY BANK Call Date: 12/31/96 ST-BK: 1497 FFIEC 033
239 SO. MAIN STREET
RED BLUFF, CA 96080 Vendor ID: D CERT: 25594 Page RI-1
Transit Number: 12114093 3
CONSOLIDATED REPORT OF INCOME
FOR THE PERIOD JANUARY 1, 1996 - DECEMBER 31, 1996
ALL REPORT OF INCOME SCHEDULES ARE TO BE REPORTED ON A CALENDAR
YEAR-TO-DATE BASIS IN THOUSANDS OF DOLLARS.
SCHEDULE RI - INCOME STATEMENT
<TABLE>
<CAPTION>
1280 < -
Dollar Amounts in Thousands
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Interest income:
1. a. Interest and fee income on loans (1): RIAD
----
(1) Real estate loans____________________________________________________________________4246 . . 3,873 1.a.1
(2) Installment loans____________________________________________________________________4247 . . 2,852 1.a.2
(3) Credit cards and related plans_______________________________________________________4248 . . 215 1.a.3
(4) Commercial (time and demand) and all other loans_____________________________________4249 . . 1,165 1.a.4
b. Income from lease financing receivables:
(1) Taxable leases_______________________________________________________________________4505 . . 0 1.b.1
(2) Tax-exempt leases____________________________________________________________________4307 . . 41 1.b.2
c. Interest income on balances due from depository institutions (2)________________________4115 . . 0 1.c
d. Interest and dividend income on securities:
(1) U.S. Treasury securities and U.S. Government agency and corporation
obligations__________________________________________________________________________4027 . . 856 1.d.1
(2) Securities issued by states and political subdivisions in the U.S.:
(a) Taxable securities_______________________________________________________________4506 . . 0 1.d.2a
(b) Tax-exempt securities____________________________________________________________4507 . . 536 1.d.2b
(3) Other domestic debt securities_______________________________________________________3657 . . 0 1.d.3
(4) Foreign debt securities______________________________________________________________3658 . . 0 1.d.4
(5) Equity securities (including investments in mutual funds)____________________________3659 . . 20 1.d.5
e. Interest income from trading assets_____________________________________________________4069 . . 0 1.e
f. Interest income on federal funds sold and securities
purchased under agreements to resell____________________________________________________4020 . . 716 1.f
g. Total interest income (sum of items 1.a through 1.f)____________________________________4107 . . 10,274 1.g
_____________________
1) See instructions for loan classifications used in this schedule.
2) Includes interest income on time certificates of deposit not held for trading.
</TABLE>
<PAGE>
TEHAMA COUNTY BANK Call Date: 12/31/96 ST-BK: 1497 FFIEC 033
239 SO. MAIN STREET
RED BLUFF, CA 96080 Vendor ID: D CERT: 25594 Page RI- 2
Transit Number: 12114093 4
SCHEDULE RI - CONTINUED
<TABLE>
<CAPTION>
Dollar Amounts in Thousands
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
2. Interest expense:
a. Interest on deposits: RIAD Year-to-date
(1) Transaction accounts (NOW accounts, ATS accounts, and ----
telephone and preauthorized transfer accounts)_______________________________________4508 . . 150 . . . . 2.a.1
(2) Nontransaction accounts:
(a) Money market deposit accounts (MMDAs)_____________________________________________4509 . . 1,048 . . . . 2.a.2a
(b) Other savings deposits____________________________________________________________4511 . . 299 . . . . 2.a.2b
(c) Time certificates of deposit of $100,000 or
more______________________________________________________________________________4174 . . 562 . . . . 2.a.2c
(d) All other time deposits___________________________________________________________4512 . . 2,284 . . . . 2.a.2d
b. Expense of federal funds purchased and securities
sold under agreements to repurchase______________________________________________________4180 . . 0 . . . . 2.b
c. Interest on demand notes issued to the U.S.
Treasury, trading liabilities, and on other
borrowed money___________________________________________________________________________4185 . . 14 . . . . 2.c
d. Interest on mortgage indebtedness and obligations
under capitalized leases_________________________________________________________________4072 . . 0 . . . . 2.d
e. Interest on subordinated notes and debentures____________________________________________4200 . . 0 . . . . 2.e
f. Total interest expense (sum of items 2.a
through 2.e)_____________________________________________________________________________4073 . . 4,357 . . . . 2.f
3. Net interest income (item 1.g minus 2.f)____________________________________________________4074 . . . . . . . 5,917 3.
4. Provisions:
a. Provision for loan and lease losses______________________________________________________4230 . . . . . . . 570 4.a
b. Provision for allocated transfer risk____________________________________________________4243 . . . . . . . 0 4.b
5. Noninterest income:
a. Income from fiduciary activities_________________________________________________________4070 . . 0 . . . . 5.a
b. Service charges on deposit accounts______________________________________________________4080 . . 373 . . . . 5.b
c. TRADING REVENUE (MUST EQUAL SCHEDULE RI. SUM OF MEMORANDUM
ITEMS 8.A THROUGH 8.D)___________________________________________________________________4220 . . 0 . . . . 5.c
d. Other foreign transaction gains (losses)_________________________________________________4076 . . 0 . . . . 5.d
e. Not applicable.
f. Other noninterest income:
(1) Other fee income_____________________________________________________________________5407 . . 1,364 . . . . 5.f.1
(2) All other noninterest income*________________________________________________________5408 . . 123 5.f.2
g. Total noninterest income
(sum of items 5.a through 5.f.(2)._______________________________________________________4079 . . . . . . . 1,860 5.g
6. a. Realized gains (losses) on held-to-maturity
securities_______________________________________________________________________________3521 . . . . . . . 0 6.a
b. Realized gains (losses) on available-for-sale
securities_______________________________________________________________________________3196 . . . . . . . 0 6.b
7. Noninterest expense:
a. Salaries and employee benefits___________________________________________________________4135 . . 2,108 . . . . 7.a
b. Expenses of premises and fixed assets (net of
rental income) (excluding salaries and employee
benefits and mortgage interest)__________________________________________________________4217 . . 500 . . . . 7.b
c. Other noninterest expense*_______________________________________________________________4092 . . 1,701 . . . . 7.c
d. Total noninterest expense
(sum of items 7.a through 7.c)___________________________________________________________4093 . . . . . . . 4,309 7.d
8. Income (loss) before income taxes and extraordinary
items and other adjustments (item 3 plus or minus items
4.a. 4.b. 5.g. 6.a. 6.b. and 7.d)___________________________________________________________4301 . . . . . . . 2,898 8.
9. Applicable income taxes (on item 8)_________________________________________________________4302 . . . . . . . 959 9.
10. Income (loss) before extraordinary items and other
adjustments (item 8 minus 9)________________________________________________________________4300 . . . . . . . l,939 10.
11. Extraordinary items and other adjustments:
a. Extraordinary items and other adjustments, gross
of income taxes *_______________________________________________________________________4310 . . 0 . . . . 11.a
b. Appliable income taxes (on item 11.a)*___________________________________________________4315 . . 0 . . . . 11.b
c. Extraordinary items and other adjustments, net of
income taxes (item 11.a minus 11.b)_____________________________________________________4320 . . . . . . . 0 11.c
12. Net income (loss) (sum of items 10 and 11.c)________________________________________________4340 . . . . . . . 1,939 12.
</TABLE>
_______________
*Describe on Schedule RI-E - Explanations.
<PAGE>
TEHAMA BANK Call Date 03/31/97 ST-BK 1497 FFIEC 033
239 SO. MAIN STREET
RED BLUFF, CA 96080 Vendor ID: D CERT: 25594 Page RI-1
3
Transit Number: 12114093
CONSOLIDATED REPORT OF INCOME
FOR THE PERIOD JANUARY 1, 1997 - MARCH 31, 1997
ALL REPORT OF INCOME SCHEDULES ARE TO BE REPORTED ON A CALENDAR
YEAR-TO-DATE BASIS IN THOUSANDS OF DOLLARS.
SCHEDULE RI - INCOME STATEMENT
<TABLE>
<CAPTION>
I280 < -
Dollar Amounts in Thousands
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
1. Interest income:
a. Interest and fee income on loans (1): RIAD
----
(1) Real estate loans___________________________________________4246 . . 1,075 1.a.1
(2) Installment loans___________________________________________4247 . . 797 1.a.2
(3) Credit cards and related plans______________________________4248 . . 56 1.a.3
(4) Commercial (time and demand) and all other loans____________4249 . . 249 1.a.4
b. Income from lease financing receivables:
(1) Taxable leases______________________________________________4505 . . 0 1.b.1
(2) Tax-exempt leases___________________________________________4307 . . 7 1.b.2
c. Interest income on balances due from depository
institutions (2)________________________________________________4115 . . 0 1.c
d. Interest and dividend income on securities:
(1) U.S. Treasury securities and U.S. Government agency
obligations_________________________________________________4027 . . 318 1.d.1
(2) Securities issued by states and political subdivisions
in the U.S.:
(a) Taxable securities______________________________________4506 . . 0 1.d.2a
(b) Tax-exempt securities___________________________________4507 . . 148 1.d.2b
(3) Other domestic debt securities______________________________3657 . . 0 1.d.3
(4) Foreign debt securities_____________________________________3658 . . 0 1.d.4
(5) Equity securities (including investments in mutual funds)___3659 . . 5 1.d.5
e. Interest income from trading assets_____________________________4069 . . 0 1.e
f. Interest income on federal funds sold and securities purchased
under agreements to resell______________________________________4020 . . 165 1.f
g. Total interest income (sum of items 1.a through 1.f)____________4107 . . 2,820 1.g
</TABLE>
__________________________
(1) See instructions for loan classifications used in this schedule.
(2) Includes interest income on time certificates of deposit not held for
trading.
<PAGE>
TEHAMA BANK Call Date: 03/31/97 ST-BK: 1497 FFIEC 033
239 SO. MAIN STREET Vendor ID: D CERT: 25594 Page RI- 2
RED BLUFF, CA 96080
Transit Number: 12114093 4
SCHEDULE RI - CONTINUED
<TABLE>
<CAPTION>
Dollar Amounts in Thousands
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
2. Interest expense:
a. Interest on deposits: RIAD Year-to-date
(1) Transaction accounts (NOW accounts, ATS accounts and ----
telephone and preauthorized transfer accounts)__________________________4508 . . 44 . . . . . . 2.a.1
(2) Nontransaction accounts:
(a) Money market deposit accounts (MMDAs)________________________________4509 . . 251 . . . . . . 2.a.2a
(b) Other savings deposits_______________________________________________4511 . . 84 . . . . . . 2.a.2b
(c) Time deposits of $100.000 or more____________________________________A517 . . 158 . . . . . . 2.a.2c
(d) Time deposits of less than $ 100.000_________________________________A518 . . 660 . . . . . . 2.a.2d
b. Expense of federal funds purchased and securities
sold under agreements to repurchase_________________________________________4180 . . 0 . . . . . . 2.b
c. Interest on demand notes issued to the U.S. Treasury,
trading liabilities and on other borrowed money_____________________________4185 . . 4 . . . . . . 2.c
d. Not applicable.
e. Interest on subordinated notes and debentures_______________________________4200 . . 0 . . . . . . 2.e
f. Total interest expense (sum of items 2.a
through 2.e)________________________________________________________________4073 . . 1,201 . . . . . . 2.f
3. Net interest income (item 1.g minus 2.f)________________________________________4074 . . . . . . . . 1,619 3.
4. Provisions:
a. Provision for loan and lease losses_________________________________________4230 . . . . . . . . 170 4.a
b. Provision for allocated transfer risk_______________________________________4243 . . . . . . . . 0 4.b
5. Noninterest income:
a. Income from fiduciary activities____________________________________________4070 . . 0 . . . . . . 5.a
b. Service charges on deposit accounts_________________________________________4080 . . 99 . . . . . . 5.b
c. Trading revenue (must equal Schedule RI. sum of Memoradum
items 8.a through 8.d)______________________________________________________A220 . . 0 . . . . . . 5.c
d. Not applicable.
e. Not applicable.
f. Other noninterest income:
(1) Other fee income________________________________________________________5407 . . 346 . . . . . . 5.f.1
(2) All other noninterest income*___________________________________________5408 . . 37 . . . . . . 5.f.2
g. Total noninterest income
(sum of items 5.a through 5.f.(2))__________________________________________4079 . . . . . . . . 482 5.g
6. a. Realized gains (losses) on held-to-maturity
securities__________________________________________________________________3521 . . . . . . . . 0 6.a
b. Realized gains (losses) on
available-for-sale securities_______________________________________________3196 . . . . . . . . 0 6.b
7. Noninterest expense:
a. Salaries and employee benefits______________________________________________4135 . . 627 . . . . . . 7.a
b. Expenses of premises and fixed assets (net of
rental income) (excluding salaries and employee
benefits and mortgage interest)_____________________________________________4217 . . 162 . . . . . . 7.b
c. Other noninterest expense*__________________________________________________4092 . . 486 . . . . . . 7.c
d. Total noninterest expense
(sum of items 7.a through 7.c)______________________________________________4093 . . . . . . . . 1,275 7.d
8. Income (loss) before income taxes and extraordinary
items and other adjustments (item 3 plus or minus
items 4.a. 4.b. 5.g, 6.a, 6.b. and 7.d)_________________________________________4301 . . . . . . . . 656 8.
9. Applicable income taxes (on item 8)_____________________________________________4302 . . . . . . . . 233 9.
10. Income (loss) before extraordinary items and other adjustments
(item 8 minus 9)________________________________________________________________4300 . . . . . . . . 423 10.
11. Extraordinary items and other adjustments, net of income
taxes *_________________________________________________________________________4320 . . . . . . . . 0 11.
12. Net income (loss) (sum of items 10 and 11)______________________________________4340 . . . . . . . . 423 12.
</TABLE>
__________________
* Describe on Schedule RI-E - Explanations.
<PAGE>
TEHAMA COUNTY BANK Call Date: 03/31/96 ST-BK: 1497 FFIEC 033
239 SO. MAIN STREET Vendor ID: D CERT: 25594 Page RC- 1
RED BLUFF, CA 96080
Transit Number:02114093 9
CONSOLIDATED REPORT OF CONDITION FOR INSURED COMMERCIAL
AND STATE-CHARTERED SAVINGS BANKS FOR MARCH 31, 1996
All schedules are to be reported in thousands of dollars. Unless otherwise
indicated, report the amount outstanding as of the last business day of the
quarter.
SCHEDULE RC - BALANCE SHEET
<TABLE>
<CAPTION>
C200 < -
Dollar Amounts in Thousands
- ----------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
1. Cash and balances due from depository institutions
(from Schedule RC-A): RCON
----
a. Noninterest-bearing balances and currency and coin (1)_0081. . 3,653 1.a
b. Interest-bearing balances (2)__________________________0071. . 0 l.b
2. Securities:
a. Held-to-maturity securities
(from Schedule RC-B, column A)_________________________1754. . 7,836 2.a
b. Available-for-sale securities
(from Schedule RC-B, column D)_________________________1773. . 15,726 2.b
3. Federal funds sold and securities purchased under
agreements to resell:
a. Federal funds sold_____________________________________0276. . 14,000 3.a
b. Securities purchased under agreements to resell________0277. . 0 3.b
4. Loans and lease financing receivables: RCON
a. Loans and leases, net of unearned income ----
(from schedule RC-C)_____________________2122. . 81,559 . . . . . 4.a
b. LESS: Allowance for loan and
lease Losses_____________________________3123. . 894 . . . . . 4.b
c. LESS: Allocated transfer risk reserve____3128. . 0 . . . . . 4.c
d. Loans and leases, net of unearned
income, allowance, and reserve
(item 4.a minus 4.b and 4.c)___________________________2125. . 80,665 4.d
5. Trading assets_____________________________________________3545. . 0 5.
6. Premises and fixed assets
(including capitalized leases)_____________________________2145. . 1,293 6.
7. Other real estate owned (from Schedule RC-M)_______________2150. . 506 7.
8. Investments in unconsolidated subsidiaries
and associated companies (from Schedule RC-M)______________2130. . 0 8.
9. Customers' liablity to this bank on
acceptances outstanding____________________________________2155. . 0 9.
10. Intangible assets (from Schedule RC-M)_____________________2143. . 0 10.
11. Other assets (from Schedule RC-F)__________________________2160. . 2,832 11.
12. Total assets (sum of items 1 through 11)___________________2170. . 126,511 12.
</TABLE>
______________
(1) Includes cash items in process of collection and unposted debits.
(2) Includes time certificates of deposit not held for trading.
<PAGE>
TEHAMA COUNTY BANK Call Date: 03/31/96 ST-BK: 1497 FFIEC 033
239 SO. MAIN STREET Vendor ID:D CERT: 25594 Page RC- 2
RED BLUFF, CA 96080
Transit Number: 12114093 10
SCHEDULE RC - CONTINUED
<TABLE>
<CAPTION>
Dollar Amounts in Thousands
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LIABILITIES
13. Deposits: RCON
a. In domestic offices (sum of totals of ----
columns A and C from Schedule RC-E)________________________________2200. . 111,848 13.a
RCON
----
(1) Noninterest-bearing (1)___________6631. . 19,378 . . . . . . . . 13.a.1
(2) Interest-bearing__________________6636. . 92,470 . . . . . . . . 13.a.2
b. In foreign offices, Edge and Agreement subsidiaries, and IBFs
(1) Noninterest-bearing
(2) Interest-bearing.
14. Federal funds purchased and securities sold under agreements
to repurchase:
a. Federal funds purchased____________________________________________0278. . 0 14.a
b. Securities sold under agreements to repurchase_____________________0279. . 0 14.b
15. a. Demand notes issued to the U.S. Treasury___________________________2840. . 447 15.a
b. Trading Liabilities________________________________________________3548. . 0 15.b
16. Other borrowed money:
a. With a remaining maturity of one year or Less______________________2332. . 0 16.a
b. With a remaining maturity of more than one year____________________2333. . 0 16.b
17. Mortgage indebtedness and obligations under
capitalized leases____________________________________________________2910. . 0 17.
18. Bank's liability on acceptances executed and
outstanding___________________________________________________________2920. . 0 18.
19. Subordinated notes and debentures_____________________________________3200. . 0 19.
20. Other liabilities (from Schedule RC-G)________________________________2930. . 866 20.
21. Total Liabilities (sum of items 13 through 20_________________________2948. . 113,161 21.
22. Limited-Life preferred stock and related surplus______________________3282. . 0 22.
EQUITY CAPITAL
23. Perpetual preferred stock and related surplus_________________________3838. . 0 23.
24. Common stock__________________________________________________________3230. . 10,118 24.
25. Surplus (exclude all surplus related
to preferred stock)___________________________________________________3839. . 0 25.
26. a. Undivided profits and capital reserves_____________________________3632. . 3,377 26.a
b. Net unrealized holding gains (losses)
on available-for-sale securities___________________________________8434. . ( 145) 26.b
27. Cumulative foreign currency translation adjustments___________________ . . . . . . . . .
28. Total equity capital (sum of items 23 through 27)_____________________3210. . 13,350 28.
29. Total liabilities, limited-life preferred stock, and
equity capital (sum of items 21, 22, and 28)__________________________3300. . 126,511 29.
Memorandum
To be reported only with the March Report of Condition.
1. Indicate in the box at the right the number of the statement
below that best describes the most comprehensive Level of
auditing work performed for the bank by independent external
auditors as of any date during 1995 __________________________________6724. . 1 M.1
</TABLE>
1 = Independent audit of the bank conducted in accordance with generally
accepted auditing standards by a certified public accounting firm which
submits a report on the bank
2 = Independent audit of the bank's parent holding company conducted in
accordance with generally accepted auditing standards by a certified public
accounting firm which submits a report on the consolidated holding company
(but not on the bank separately)
3 = Directors' examination of the bank conducted in accordance with generally
accepted auditing standards by a certified public accounting firm (may be
required by state chartering authority)
4 = Directors' examination of the bank performed by other external auditors
(may be required by state chartering authority)
5 = Review of the bank's financial statements by external auditors
6 = Compilation of the bank's financial statements by external auditors
7 = Other audit procedures (excluding tax preparation work)
8 = No external audit work
_____________
(1) Includes total demand deposits and noninterest-bearing time and savings
deposits.
<PAGE>
TEHAMA COUNTY BANK Call Date: 12/31/96 ST-BK: 1497 FFIEC 033
239 SO. MAIN STREET Vendor ID: D CERT: 25594 Page RC-I
RED BLUFF, CA 96080
Transit Number: 12114093 9
CONSOLIDATED REPORT OF CONDITION FOR INSURED COMMERCIAL AND STATE-CHARTERED
SAVINGS BANKS FOR DECEMBER 31, 1996
All schedules are to be reported in thousands of dollars. Unless otherwise
indicated, report the amount outstanding as of the last business day of the
quarter.
SCHEDULE RC - BALANCE SHEET
<TABLE>
<CAPTION>
C200 < -
Dollar Amounts in Thousands
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
1. Cash and balances due from depository institutions RCON
(from Schedule RC-A): ----
a. Noninterest-bearing balances and currency and coin (1)______________0081. . 4,389 1.a
b. Interest-bearing balances (2)_______________________________________0071. . 0 1.b
2. Securities:
a. Held-to-maturity securities (from Schedule RC-B. column A)__________1754. . 10,165 2.a
b. Available-for-sale securities (from Schedule RC-B. column D)________1773. . 21,426 2.b
3. Federal funds sold and securities purchased under agreements
to resell:
a. Federal funds sold__________________________________________________0276. . 5,000 3.a
b. Securities purchased under agreements to resell_____________________0277. . 0 3.b
4. Loans and lease financing receivables:
a. Loans and leases, net of unearned income RCON
----
(from Schedule RC-C)____________________________2122. . 92,836 . . . . . . 4.a
b. LESS: Allowance for loan and lease losses_______3123. . 951 . . . . . . 4.b
c. LESS: Allocated transfer risk reserve___________3128. . 0 . . . . . . 4.c
d. Loans and leases, net of unearned income, allowance,
and reserve (item 4.a minus 4.b and 4.c)____________________________2125. . 91,885 4.d
5. Trading assets_________________________________________________________3545. . 0 5.
6. Premises and fixed assets (including capitalized leases)_______________2145. . 1,201 6.
7. Other real estate owned (from Schedule RC-M)___________________________2150. . 470 7.
8. Investments in unconsolidated subsidiaries and associated
companies (from Schedule RC-M)_________________________________________2130. . 0 8.
9. Customers' liability to this bank on acceptances outstanding___________2155. . 0 9.
10. Intangible assets (from Schedule RC-M)_________________________________2143. . 0 10.
11. Other assets (from Schedule RC-F)______________________________________2160. . 3,312 11.
12. Total assets (sum of items 1 through 11)_______________________________2170. . 137,848 12.
</TABLE>
________________________
(1) Includes cash items in process of collection and unposted debits.
(2) Includes time certificates of deposit not held for trading.
<PAGE>
FFIEC 033
TEHAMA COUNTY BANK Call Date: 12/31/96 ST-BK 1497 Page RC- 2
239 SO. MAIN STREET
RED BLUFF, CA 96080 Vendor ID: D CERT: 25594 10
Transit Number: 12114093
SCHEDULE RC - CONTINUED
<TABLE>
<CAPTION>
Dollar Amounts in Thousands
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LIABILITIES
13. Deposits: RCON
a. In domestic offices (sum of totals of ----
columns A and C from Schedule RC-E)________________________2200. . 121,602 13.a
RCON
----
(1) Noninterest-bearing (1)______6631. . 22,938 . . . . . . 13.a.1
(2) Interest-bearing_____________6636. . 98,664 . . . . . . 13.a.2
b. In foreign offices, Edge and Agreement subsidiaries,
and IBFs___________________________________________________ . . . . . .
(1) Noninterest-bearing___________________________________ . . . . . .
(2) Interest-bearing______________________________________ . . . . . .
14. Federal funds purchased and securities sold under agreements
to repurchase:
a. Federal funds purchased_____________________________________0278. . 0 14.a
b. Securities sold under agreements to
repurchase_________________________________________________0279. . 0 14.b
15. a. Demand notes issued to the U.S. Treasury____________________2840. . 383 15.a
b. Trading liabilities_________________________________________3548. . 0 15.b
16. Other borrowed money:
A. WITH A REMAINING MATURITY OF ONE YEAR OR LESS_______________2332. . 0 16.a
B. WITH A REMAINING MATURITY OF MORE THAN ONE YEAR_____________2333. . 0 16.b
17. Mortgage indebtedness and obligations under capitalized leases_2910. . 0 17.
18. Bank's liability on acceptances executed and outstanding_______2920. . 0 18.
19. Subordinated notes and debentures______________________________3200. . 0 19.
20. Other liabilities (from Schedule RC-G)_________________________2930. . 762 20.
21. Total liabilities (sum of items 13 through 20)_________________2948. . 122,747 21.
22. Limited-life preferred stock and related surplus_______________3282. . 0 22.
EQUITY CAPITAL
23. Perpetual preferred stock and related surplus__________________3838. . 0 23.
24. Common stock___________________________________________________3230. . 12,226 24.
25. Surplus (exclude all surplus related to preferred stock)_______3839. . 0 25.
26. a. Undivided profits and capital reserves______________________3632. . 2,906 26.a
b. Net unrealized holding gains (losses) on available-for-sale
securities__________________________________________________8434. . ( 31) 26.b
27. Cumulative foreign currency translation adjustments____________ . . . . . .
28. Total equity capital (sum of items 23 through 27)______________3210. . 15,101 28.
29. Total liabilities, limited-life preferred stock,
and equity capital (sum of items 21, 22, and 28)_______________3300. . 137,848 29.
MEMORANDUM
TO BE REPORTED ONLY WITH THE MARCH REPORT OF CONDITION.
1. Indicate in the box at the right the number of the statement
below that best describes the most comprehensive level of
auditing work performed for the bank by independent external
auditors as of any date during 1995____________________________6724. . N/A M.1
</TABLE>
1 = Independent audit of the bank conducted in accordance with generally
accepted auditing standards by a certified public accounting firm which
submits a report on the bank
2 = Independent audit of the bank's parent holding company conducted in
accordance with generally accepted auditing standards by a certified public
accounting firm which submits a report on the consolidated holding company
(but not on the bank separately)
3 = Directors' examination of the bank conducted in accordance with generally
accepted auditing standards by a certified public accounting firm (may be
required by state chartering authority)
4 = Directors' examination of the bank performed by other external auditors
(may be required by state chartering authority)
5 = Review of the bank's financial statements by external auditors
6 = Compilation of the bank's financial statements by external auditors
7 = Other audit procedures (excluding tax preparation work)
8 = No external audit work
________________________
(1) Includes total demand deposits and noninterest-bearing time and savings
deposits.
<PAGE>
TEHAMA BANK Call Date: 03/31/97 ST-BK: 1497 FFIEC 033
239 SO. MAIN STREET Page RI- 7
RED BLUFF, CA 96080 Vendor ID: D CERT: 25594
Transit Number: 12114093 9
CONSOLIDATED REPORT OF CONDITION FOR INSURED COMMERCIAL
AND STATE-CHARTERED SAVINGS BANKS FOR MARCH 31, 1997
All schedules are to be reported in thousands of dollars. Unless otherwise
indicated, report the amount outstanding as of the last business day of the
quarter.
SCHEDULE RC - BALANCE SHEET
<TABLE>
<CAPTION>
C200 < -
Dollar Amounts in Thousands
- --------------------------------------------------------------------------------------------------------------
ASSETS
<S> <C> <C>
1. Cash and balances due from depository institutions RCON
(from Schedule RC-A): -----
a. Noninterest-bearing balances and currency
and coin (1)__________________________________________________0081. . 5,336 1.a
b. Interest-bearing balances (2)_________________________________0071. . 0 1.b
2. Securities:
a. Held-to-maturity securities
(from Schedule RC-B, column A)________________________________1754. . 10,388 2.a
b. Available-for-sale securities
(from Schedule RC-B, column D)________________________________1773. . 22,134 2.b
3. Federal funds sold and securities purchased
under agreements to resell_______________________________________1350. . 18,000 3.
4. Loans and lease financing receivables: RCM
a. Loans and leases, net of unearned income ----
(from Schedule RC-C)_________________________2122. . 98,204 . . . . . . 4.a
b. LESS: Allowance for loan and lease losses____3123. . 1,056 . . . . . . 4.b
c. LESS: Allocated transfer risk reserve________3128. . 0 . . . . . . 4.c
d. Loans and leases, net of unearned income,
allowance, and reserve (item 4.a minus 4.b and 4.c)___________2125. . 97,148 4.d
5. Trading assets___________________________________________________3545. . 0 5.
6. Premises and fixed assets (including capitalized leases)_________2145. . 1,739 6.
7. Other real estate owned (from Schedule RC-M)_____________________2150. . 470 7.
8. Investments in unconsolidated subsidiaries and
associated companies (from Schedule RC-M)________________________2130. . 1,984 8.
9. Customers' liability to this bank on
acceptances outstanding__________________________________________2155. . 0 9.
10. Intangible assets (from Schedule RC-M)___________________________2143. . 655 10.
11. Other assets (from Schedule RC-F)________________________________2160. . 3,650 11.
12. Total assets (sum of items 1 through 11)_________________________2170. . 161,504 12.
</TABLE>
___________________
(1) Includes cash items in process of collection and unposted debits.
(2) Includes time certificates of deposit not held for trading.
<PAGE>
TEHAMA BANK Call Date: 03/31/97 ST-BK: 1497 FFIEC 033
239 SO. MAIN STREET Page RI- 8
RED BLUFF. CA 96080 Vendor ID: D CERT: 25594
Transit Number: 12114093 10
SCHEDULE RC - CONTINUED
<TABLE>
<CAPTION>
Dollar Amounts in Thousand
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LIABILITIES
13. Deposits: RCON
a. In domestic offices (sum of totals of ----
columns A and C from Schedule RC-E)_______________________2200. . 144,615 13.a
RCON
---- . . . . . .
(1) Noninterest-bearing (1)________6631. . 28,871 . . . . . . 13.a.1
(2) Interest-bearing_______________6636. . 115,744 . . . . . . 11.a.2
b. In foreign offices, Edge and Agreement
subsidiaries, and IBFs___________________________________ . . . . . .
(1) Noninterest-bearing_________________________________ . . . . . .
(2) Interest-bearing_____________________________________ . . . . . .
14. Federal funds purchased and securities
sold under agreements to repurchase___________________________2800. . 0 14.
15. a. Demand notes issued to the U.S. Treasury___________________2840. . 455 l5.a
b. Trading liabilities________________________________________3548. . 0 15.b
16. Other borrowed money (includes mortgage indebtedness
and obligations under capitalized leases):
a. With a remaining maturity of one year or less______________2332. . 0 16.a
b. With a remaining maturity of more than one year____________2333. . 0 16.b
17. Not applicable
18. Bank's liability on acceptances executed
and outstanding_______________________________________________2920. . 0 18.
19. Subordinated notes and debentures (2)_________________________3200. . 0 19.
20. Other liabilities (from Schedule RC-G)________________________2930. . 1,184 20.
21. Total liabilities (sum of items 13 through 20)________________2948. . 146,254 21.
22. Not applicable
EQUITY CAPITAL
23. Perpetual preferred stock and related surplus_________________3838. . 0 23.
24. Common stock__________________________________________________3230. . 12,226 24.
25. Surplus (exclude all surplus related to
preferred stock)______________________________________________3839. . 0 25.
26. a. Undivided profits and capital reserves_____________________3632. . 3,328 26.a
b. Net unrealized holding gains (losses) on
available-for-sale securities______________________________8434. . ( 304) 26.b
27. Cumulative foreign currency translation adjustments___________ . . . . . .
28. Total equity capital (sum of items 23 through 27)_____________3210. . 15,250 28.
29. Total liabilities, limited-life preferred stock,
and equity capital (sum of items 21 and 28)___________________3300. . 161,504 29.
MEMORANDUM
TO BE REPORTED ONLY WITH THE MARCH REPORT OF CONDITION.
1. Indicate in the box at the right the number of the statement
below that best describes the most comprehensive level
of auditing work performed for the bank by independent
external auditors as of any date during 1996__________________6724. . 1 M.1
</TABLE>
1 = Independent audit of the bank conducted in accordance with generally
accepted auditing standards by a certified public accounting firm which
submits a report on the bank
2 = Independent audit of the bank's parent holding company conducted in
accordance with generally accepted auditing submits standards by a
certified public accounting firm which submits a report on the consolidated
holding company (but not on the bank separately)
3 = Directors' examination of the bank conducted in accordance with generally
accepted auditing standards by a certified public accounting firm (may be
required by state chartering authority)
4 = Directors' examination of the bank performed by other external auditors
(may be required by state chartering authority)
5 = Review of the bank's financial statements by external auditors
6 = Compilation of the bank's financial statements by external auditors
7 = Other audit procedures (excluding tax preparation work)
8 = No external audit
_______________________________
(1) Includes total demand deposits and noninterest-bearing time and savings
deposits.
(2) Includes limited life preferred stock and related surplus.
<PAGE>
TEHAMA BANK
<TABLE>
<CAPTION>
UNREALIZED
LOSS ON
AVAIL.-FOR
SALE
RETAINED INVESMENT
SHARES AMOUNT EARNINGS SECURITIES TOTAL
<S> <C> <C> <C> <C> <C>
--------- ------------ ------------ ---------- ------------
BALANCE AT DEC. 31, 1994 1,283,396 $ 8,105,964 $ 2,779,634 $ (127,582) $ 10,758,016
--------- ------------ ------------ ---------- ------------
Stock Options Exercised and Tax
Related Benefit 36,392 $ 310,839 $ 310,839
10% Stock Dividend 130,833 1,700,829 $ (1,703,790) $ (2,961)
Net Income $ 1,848,679 $ 1,848,679
Unrealized Loss on Available-for-Sale
Investment Securities $ 171,290 $ 171,290
--------- ------------ ------------ ---------- -----------
BALANCE AT DEC. 31, 1995 1,450,621 10,117,632 2,924,523 $ 43,708 $13,085,863
--------- ------------ ------------ ---------- -----------
Stock Options Exercised and Tax
Related Benefit 15,468 $ 152,601 $ 152,601
Net Income $ 1,939,461 $ 1,939,461
10% Stock Dividend 144,851 $ 1,955,489 $ (1,958,340) $ (2,851)
Unrealized Loss on Available-for-Sale
Investment Securities $ (61,898) $ (61,898)
--------- ------------ ------------ ---------- -----------
BALANCE AT DEC. 31, 1996 1,610,940 $ 12,225,722 $ 2,905,644 $ (18,190) $15,113,176
--------- ------------ ------------ ---------- -----------
Net Income $ 423,021 $ 423,021
Unrealized Loss on Available-for-Sale
Investment Securities $ (285,899) $ (285,899)
--------- ------------ ------------ ---------- -----------
BALANCE AT MARCH 31, 1997 1,610,940 $ 12,225,722 $ 3,328,665 $ (304,089) $15,250,298
--------- ------------ ------------ ---------- -----------
--------- ------------ ------------ ---------- -----------
</TABLE>
<PAGE>
TEHAMA BANK
STATEMENT OF CASH FLOW
THREE MONTH ENDED MARCH 31, 1997
<TABLE>
<CAPTION>
1997 1996
----------- -----------
<S> <C> <C>
OPERATING ACTIVITIES $ 423,201 $ 452,533
Net Income
Adjustments to Reconcile Net Income to Net
Cash provided by Operating Activities:
Provision for Loan Losses $ 170,000 $ 120,000
Provision for Depreciation and Amortization $ 47,559 $ 36,680
Increase in Loan Origination Fees and Costs, Net $ (74,424) $ (25,366)
(Increase) decrease in Interest Receivable $ 135,525 $ 196,475
and other assets
(Decreased) increase in Interest Payable and
other Liabilities $ 232,193 $ 159,017
Unrealized Gain (Loss) on Securities $ (285,899) $ 188,961
----------- -----------
NET CASH PROVIDED BY OPERATING ACTIVITIES $ 648,155 $ 750,378
----------- -----------
INVESTING ACTIVITIES
Net proceeds from Maturities, Purchases and
Sales of Investment Securities $ 1,236,811 $(1,195,817)
Net Decrease (increase) in Loans $(7,726,007) $ (191,605)
Purchases of Premises and Equipment $ (585,552) $ (13,047)
772 Investment - Leasing Co. $(1,983,599) $ -
Sale of Equipment $ - $ 393
Deposit Premium - Goodwill $ (654,836) $ -
Sale of OREO $ - $ -
------------ -----------
NET CASH USED BY INVESTING ACTIVITIES $(9,713,183) $(1,400,076)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
1997 1996
----------- -----------
<S> <C> <C>
FINANCING ACTIVITIES
Net Increase (decrease) in Demand Deposits,
Interest Bearing Demand Deposits and
Savings Accounts $13,851,853 $(3,512,589)
Net Increase in Certificates of Deposit
$ 9,160,302 $ 1,773,752
Stock Options Exercised
$ - $ -
Cash Paid for Fractional Shares issued in
connection with Stock Dividends
$ - $ -
NET CASH PROVIDED BY FINANCING ACTIVITIES
------------ -----------
$23,012,155 $(1,738,837)
------------ -----------
INCREASE IN CASH AND CASH EQUIVALENTS
$13,947,127 $(2,388,535)
Cash and Cash Equivalents at Beginning of Year
$ 9,388,685 $20,041,908
------------ -----------
CASH AND CASH EQUIVALENTS AT END OF
THREE MONTHS
$23,335,812 $17,653,373
------------ -----------
------------ -----------
</TABLE>
<PAGE>
Management's Discussion and Analysis of
Condition and Results of Operations
RESULTS OF OPERATIONS
The following is Management's discussion and analysis of the results of
operations and financial condition of Tehama Bank for the calendar quarters
ending March 31, 1996, December 31, 1996 and March 31 1997. The ratios in
this discussion when comparing to previous reporting quarters will show a
wide variance. This is due to certain actions taken by the Bank during the
first quarter of 1997. On January 2, 1997 the Bank acquired two branches
from Wells Fargo Bank, N.A. with deposits totalling approximately
$19,000,000, no loans. The Bank did acquire certain properties and F.F. & E.
with the acquisition.
EARNINGS OVERVIEW
The Bank's net income decreased from $574,000 in the 4th quarter of 1996 to
$423,000 for the 1st quarter of 1997, a 26.31% decrease. Net income
comparison for the 1st quarters of 1996 and 1997 results in a 4.42% decrease,
$453,000 vs $423,000. The decrease over the first three months of 1997 is
due primarily to the acquisition expenses and additional operating expenses.
Based on 1,610,940 shares outstanding as of March 31, 1997 the net income per
share per quarter is $0.356 for the 1st quarter of 1996, $0.281 for the 4th
quarter of 1996, and $0.263 for the 1st quarter of 1997.
<PAGE>
NET INTEREST INCOME
The primary source of income for the Bank is net interest income, the
difference between the interest earned on assets (primarily loans) and
interest paid on deposits taken by the Bank to fund these loans. Net
interest income increased from $1,393,000 for the 1st quarter of 1996, to
$1,588,000 for the 4th quarter of 1996, to $1,619,000 for the 1st quarter of
1997. First quarter 1997 increased 1.95% over 4th quarter 1996. First
quarter 1997 increased 16.22% over 1st quarter 1996. The Bank's gross loans
increased 15.05% from $81,559m as of March 31,1996 to $92,836m as of December
31, 1996, and increased 5.78% to $98,204m as of March 31,1997. Interest
bearing deposits increased 6.70% from $92,470m on March 31, 1996 to $98,664m
on December 31, 1996 and increased 17.31% to $115,744m on March 31, 1997.
PROVISION FOR LOAN LOSSES
The allowance for loan losses, as a percentage of outstanding loans as of
March 31, 1996, was 1.10%, compared to 1.02% as of December 31, 1996, and
1.08% as of March 31,1997. Additions to the allowance are charged against
the Banks earnings. The Bank's allowance for loan losses totaled $894,000 as
of March 31, 1996, $951,000 as of December 31, 1996 and $1,056,000 as of
March 31, 1997. These figures are net of loans charged off and recoveries of
loans previously charged off. The Bank's allowance for loan losses is
determined by a review and analysis of the portfolio's current structure.
<PAGE>
NON-INTEREST INCOME
Non-interest income, which consists primarily of service charges on deposit
accounts plus other fees and charges collected by the Bank, amounted to $438,000
for the 1st quarter of 1996, $498,000 for the 4th quarter of 1996 and $482,000
for the 1st quarter of 1997. As a percentage of total income , these amounts
equal 14.26%, 13.49% and 14.60% respectively. The Bank did not recognize any
material gains or losses on securities sold during these reporting periods.
NON-INTEREST EXPENSE
Non-interest expense (operating expense) was $1,033,000 for the 1st quarter of
1996, $1,064,000 for the 4th quarter of 1996, and $1,275,000 for the 1st quarter
of 1997. As a percentage of net interest income, these amounts equal 74.15%
80.29%, and 78.75% respectively.
INCOME TAXES
The Accrued income taxes at the end of the 1st quarter of 1996 were $225,000 or
33.19% of net income before taxes. The accrued income taxes at the end of the
1st quarter of 1997 were $233,000 or 35.52% of net income before taxes. The
increase is due to less tax-exempt income as a percentage of total income when
compared to prior quarters
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ASSETS AND LIABILITIES
Due to the general growth of the business during 1996 and 1997 which are the
Banks 12th and 13th calendar years of operation:
1. Total assets of the Bank increased from $126,511m on March 31,1996
to $161,504m on March 31,1997, a 27.66% increase.
2. Total net loans of the Bank increased from $80,665m on
March 31,1996 to $97,148m on March 31,1997, a 20.43% increase.
3. Total liabilities of the Bank increased from $113,161m on March 30,
1996 to $146,254m on March 31, 1997, a 29.24% increase.
4. Total deposits of the Bank increased from $111,848m on March 31,1996
to $144,615m on March 31, 1997, a 29.30% increase.
LIQUIDITY AND CAPITAL
Liquidity, the ability of an enterprise to generate sufficient amounts of cash
or other current assets to meet the short-term and long-term cash flow needs of
the enterprise is measured by various ratios. One of the most common ratios for
<PAGE>
Banks is the ratio of loans to deposits. This ratio was 72.92% on March
31,1996, 75.40% on December 31,1996 and 65.18% on March 31,1997
Each ratio indicates the existence of an adequate degree of liquidity. In
addition, on Mach 31, 1997 the Bank held the following investments:
1. $ 18,000,000 in overnight Fed Funds;
2. $ 23,555,000 in U.S. Treasury Securities,
U.S. Agencies and Municipal Securities
maturing within 5 years:
3. $ 7,375,000 In U.S. Agencies and Municipal Secuties. .
maturing within 5 to 10 years; and
4. $ 1,225,000 In U.S. Agencies and Municipal Securities
maturing after 10 years
Capital adequacy is generally measured by the ratio of total equity capital
(plus the allowance for loan losses) to total assets. This ratio was 11.26%
on March 31,1996, 11.59% on December 31, 1996 and 10.10% on March 31,1997.
These ratios exceed current minimum regulatory requirements. Additionally,
the Federal Reserve Board, jointly with other Federal Regulatory Agencies,
has issued Capital Adequacy Requirements based upon asset risk. The
requirements in their present form assign various percentages of risk to each
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category of asset. The minimum risk-based standard for all financial
institutions is 8%.
The calculation is more complex than noted above in arriving at the ratio,
but at this time the Bank's risk-based capital adequacy ratio is
approximately 16.40%, well above the minimum requirement.
Signatures
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Bank duly caused this report to be signed by the undersigned thereunto duly
authorized.
4-28-97 BY: /s/ Frank S. Onions
- ----------------------------- --------------------------
Date Frank S. Onions
Senior Vice President
& Chief Financial Officer
4-28-97 BY: /s/ William P. Ellison
- ----------------------------- ---------------------------
Date William P. Ellison
President &
Chief Executive Officer
