Californian banking groups TriCo Bancshares and Valley Republic Bancorp are to merge, they announced this week.
TriCo, the parent company for Tri Counties Bank, said in a statement that the deal would be worth approximately $165.6 million.
Once the deal is completed, Tri Counties Bank will be the largest community bank in Bakersfield and Kern County by deposits, according to the bank. The combined company will have more than $9 billion in assets, $8 billion in deposits, and a loan book of almost $6 billion.
The merger announcement is the latest development in an active year for Tri Counties Bank. Last month, it announced three new business lending centers to be opened in Irvine, Pasadena, and San Diego.
In April, the bank closed its branch in Penn Valley, citing the ongoing trend towards digital rather than in-person banking.
Commenting on the merger, Rick Smith, TriCo’s chairman, president and CEO, praised the Valley Republic team’s “long-term commitment to its customers and local community”.
“We have a proven track record of successful acquisitions, having most recently completed the integration of FNB Bancorp in 2018,” he said. “We’re excited to welcome Valley employees and customers and we are prepared to work together for a smooth transition process.”
Geraud Smith, Valley’s president and CEO, added: “We are delighted to join a bank that shares our cultural values, commitment to its customers, and has a local community banking focus. Valley has built a leading franchise in its communities, and this partnership will provide our clients with the full breadth of Tri Counties Bank’s comprehensive set of products and services.”
Tri Counties Bank said its larger size and product set would expand the offering currently available to Valley Republic Bank customers.
The agreement has been unanimously approved by the both banks’ boards, and is subject to regulatory and shareholder approval.
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