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TriCo Bancshares Completes Merger with Valley Republic Bancorp

March 29, 2022, 07:11 AM
Filed Under: Mergers & Acquisitions

TriCo Bancshares has completed its previously announced merger with Valley Republic Bancorp. The combined company, operating as TriCo Bancshares with its banking subsidiary, Tri Counties Bank, anticipates having total assets of approximately $10.1 billion as the result of the merger.

"We are excited to combine two community-focused financial institutions which are both significantly involved in the markets they serve," said Richard P. Smith, President and CEO of TriCo and Tri Counties Bank. "We look forward to providing our new clients with additional lending capabilities and expanded product offerings while delivering our unique brand of Service With Solutions."

"We see this merger as a significant milestone in our company’s history that positions us for continued growth and success," continued Smith. "Our commitment to provide value to our clients, communities and shareholders remains our top priority."

Prior to the merger, Valley had approximately $1.4 billion in assets and its subsidiary, Valley Republic Bank, operated three branch offices in Bakersfield, one branch office in Delano, and one loan production office in Fresno, California. Valley Republic Bank also merged with and into Tri Counties Bank on March 25, 2022.

Valley Republic Banks former branches reopened under the Tri Counties brand on March 28.

With the completion of the merger, TriCo has appointed Anthony L. Leggio to its board of directors. Leggio served as a director of Valley and Valley Republic Bank since incorporation in 2016 and 2008, respectively. Leggio has been President/Manager of Bolthouse Properties, LLC, Bakersfield, CA, a diversified real estate development company with commercial, residential and agricultural holdings since 2006. He is a director of Tejon Ranch Company, Lebec, CA, a growth-oriented, fully diversified real estate development and agribusiness company since 2012.

Pursuant to the terms of the Agreement and Plan of Merger dated as of July 27, 2021, between TriCo and Valley, each share of Valley common stock has been converted into the right to receive 0.95 shares of TriCo common stock, with cash to be paid in lieu of fractional shares. TriCo issued approximately 4.1 million shares of common stock in the merger. As a result, former Valley shareholders will own approximately 12 percent of TriCo’s outstanding common stock immediately following the merger.

Keefe, Bruyette & Woods, A Stifel Company served as TriCo’s financial advisors for the transaction, with Sheppard Mullin, Richter & Hampton LLP acting as its legal advisor. Stephens Inc. served as Valley’s financial advisors for the transaction, with Duane Morris LLP acting as its legal advisor.

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