Jan 22, 2014 12:06 AM
Monday evening, Chico-based Trico Bancshares, parent company of Tri Counties Bank, announced its merger with North Valley Bank. The $178 million transaction means North Valley's 18 branches and its customers will fall under the Tri Counties umbrella.
The acquisition brings Tri Counties' total assets to $3.5 billion dollars with a total of 80 Tri Counties branches from the Oregon border to Bakersfield. Bank officials say the deal is good for current Tri Counties customers and North Valley customers as well, whose accounts will soon transition to Tri Counties. "We think there's quite a bit for customers to be excited about. Banking's changing pretty dramatically and this enhances our ability to add products and services, particularly technology solutions for customers, which more and more customers want to see," said Richard Smith, President and CEO of Trico Bancshares.
The merger is subject to regulatory approval which will take about six months. Customers will likely not experience any changes at this time. In the meantime, both banks will operate independently. "It's business as usual but we'll undoubtedly be doing a lot of planning; a lot of preparing for ultimately what we think will be a very good partnership," explained Michael Cushman, President and CEO of North Valley Bank.
Under the terms of the merger agreement, North Valley stockholders will receive 0.94 shares of Trico common stock in exchange for each share of North Valley common stock.
Tri Counties is no stranger to acquiring other banks. It’s steadily grown in recent years taking over Granite Community Bank in 2010, Citizens Bank in 2011, and now North Valley Bank in 2014.
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