TriCo Bancshares Completes Merger with Valley Republic Bancorp
MAR 29, 2022 - 6:36 am
TriCo Bancshares completed its previously-announced merger with Valley Republic Bancorp. The combined company, operating as TriCo Bancshares with its banking subsidiary, Tri Counties Bank, expects to have total assets of approximately $10.1 billion as a result of the merger.
“We are excited to combine two community-focused financial institutions which are both significantly involved in the markets they serve,” Richard P. Smith, president and CEO of TriCo Bancshares and Tri Counties Bank, said. “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. Our commitment to provide value to our clients, communities and shareholders remains our top priority.”
Prior to the merger, Valley Republic Bancorp had approximately $1.4 billion in assets and its subsidiary, Valley Republic Bank, operated three branch offices in Bakersfield, CA; one branch office in Delano, CA; and one loan production office in Fresno, CA. Valley Republic Bank also merged with and into Tri Counties Bank as part of the overall merger. Valley Republic Bank’s former branches reopened under the Tri Counties brand on March 28.
With the completion of the merger, TriCo Bancshares appointed Anthony L. Leggio to its board of directors. Leggio served as a director of Valley Republic Bancorp and Valley Republic Bank since incorporation in 2016 and 2008, respectively. Leggio has been president and manager of Bolthouse Properties, a real estate development company with commercial, residential and agricultural holdings, since 2006. He has also been a director of Tejon Ranch Company, a 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 Bancshares and Valley Republic Bancorp, each share of Valley Republic Bancorp common stock has been converted into the right to receive 0.95 shares of TriCo Bancshares common stock, with cash to be paid in lieu of fractional shares. TriCo Bancshares issued approximately 4.1 million shares of common stock in the merger. As a result, former Valley Republic Bancorp shareholders will own approximately 12% of TriCo Bancshares’ outstanding common stock immediately following the merger.
Keefe, Bruyette & Woods served as TriCo Banchsares’ financial advisor for the transaction, with Sheppard Mullin acting as its legal advisor. Stephens served as Valley Republic Bancorp’s financial advisor for the transaction, with Duane Morris acting as its legal advisor.
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