CEO reveals consolidation plans after Tri Counties-North Valley merger

Sept. 26--SHASTA COUNTY, California -- Tri Counties Bank's acquisition of North Valley Bank isn't official until Oct. 3.

But which branches will close and which ones will stay open through consolidation was revealed Thursday by Tri Counties CEO Rick Smith.

When consolidation is complete, Smith said Tri Counties will have more branches than any other bank in the North State.

"That is the good news to this story," Smith said.

Chico-based Tri Counties agreed to purchase North Valley Bank, established in Redding in 1972, in January in a deal valued at approximately $178 million. The combined bank is expected to have about $3.5 billion in assets.

The Federal Deposit Insurance Corp. and the California Department of Business Oversight approved the deal earlier this month. Final regulatory approval is expected from the Federal Reserve Bank of San Francisco next week.

Smith said the merged company will start closing branches in January.

In downtown Redding, Tri Counties' California Street branch will merge into North Valley Bank'sSouth Street location. The branches are about a "stone's throw" away from each other, Smith said.

"The North Valley building is a better facility for us to work in and the parking is better," Smith said.

North Valley has a branch on Park Marina Drive in Redding that Smith said will eventually close but not immediately.

North Valley's Palo Cedro branch in the Holiday Foods shopping center north of Highway 44 will merge into the Tri Counties branch on Deschutes Road south of Highway 44.

In Anderson, Tri Counties' in-store branch in the Walmart Supercenter will merge into North Valley Bank's branch on Gateway Drive.

North Valley Bank has a branch in the Holiday Foods in Cottonwood that will move to the Tri Counties branch on Main Street.

No changes are planned for branches in Tehama, Trinity or Siskiyou counties, Smith said.

Smith said Tri Counties is still analyzing staffing levels for the merged company and has started notifying affected employees.

"We have been doing our best effort not to replace open positions at this time so the impact to branches and branch staff is minimal," Smith said. "The greater impact will be to the administrative side of the company, so generally that is where most of the reductions will occur."

Current North Valley Bank CEO Michael Cushman will become Tri Counties' executive vice president, Smith said.

"He will continue to work the many strong relationships he has in the community," Smith said.

Tri Counties Bank expects to complete the data conversion necessary for the merger by the end of October.

"Customers are receiving notification of this," Smith said.

___

(c)2014 the Redding Record Searchlight (Redding, Calif.)

Visit the Redding Record Searchlight (Redding, Calif.) at www.redding.com

Distributed by MCT Information Services