Share

TriCo Bancshares (TriCo), the parent company of Tri Counties Bank, has signed a definitive agreement to acquire FNB Bancorp, the parent company of First National Bank of Northern California (FNB NorCal) in an all-stock transaction valued nearly $315.3m.

The acquisition is expected to strengthen Tri Counties Bank’s presence throughout Northern California into the San Francisco peninsula enabling it to serve the customers located in the Bay Area.

The combined company will have 78 branches throughout California with asset strength of nearly $6.1bn, $5bn in deposits and $3.7bn in gross loans.

TriCo president and CEO Richard Smith said: “We admire FNB NorCal’s over 50 year commitment to the Bay Area and believe they are the ideal partner to enable us to enter the market.

“We strongly believe that the Bay Area will benefit from our full service community banking approach that combines contemporary products and services with personal service and community engagement.”

Under the terms of the agreement, FNB shareholders will receive 0.980 shares of TriCo common stock for each share of FNB common stock, subject to a trading collar.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

After completion of the transaction, FNB shareholders will hold nearly 24% of the common stock of the combined company.

Two FNB directors will also join TriCo’s Board of Directors following the completion of the deal.

The deal is subject to shareholder approval of both the companies as well as federal and California banking regulatory agencies consent.

TriCo expects that the transaction would be 2% accretive to earnings in the next year (excluding transaction costs) and 8% accretive to earnings in 2019.