NEWS RELEASE - FINAL
NORTH VALLEY BANCORP ANNOUNCES COMPLETION OF MERGER WITH SIX RIVERS NATIONAL
BANK
October 12, 2000 - REDDING, CA - North Valley Bancorp (NASDAQ:NOVB)
announced today that its merger with Six Rivers National Bank was completed on
October 11, 2000.
Each Six Rivers National Bank shareholder will receive 1.40 shares of
North Valley Bancorp stock for each share of Six Rivers National Bank stock in a
tax-free exchange. The merger will be accounted for as a pooling of interests.
Effective October 11, 2000, Six Rivers National Bank will operate as a wholly
owned subsidiary of North Valley Bancorp. On a proforma basis as of September
30, 2000, the combined company would have had total assets of approximately $536
million and shareholders' equity of approximately $55 million.
"The completion of the merger with Six Rivers National Bank is a
significant step in achieving our strategic goal of expanding our geographic
reach throughout Northern California and Southern Oregon," stated North Valley
Bancorp's Chairman of the Board, Rudy V. Balma. "We are also pleased to welcome
Kevin Hartwick and Dolores Vellutini, current Six Rivers National Bank
directors, to the North Valley Bancorp Board of Directors."
Mike Cushman, President and Chief Executive Officer of North Valley
Bancorp and North Valley Bank, stated: "The addition of Six Rivers National Bank
strengthens our position as a premier provider of financial services throughout
the five counties we serve. The integration process has already begun with the
roll out last month of our "Positively Free Checking" program at all of the Six
Rivers National Bank branch locations. Also, significant work has been performed
in preparation for a December 2000 conversion of Six Rivers National Bank's data
processing systems. Our goal is to achieve efficiencies within six months of the
closing date, and the merger of Six Rivers National Bank is anticipated to be
accretive to the company's 2001 earnings."
Mike Martinez, who will continue as President and CEO/CFO of Six Rivers
National Bank, commented: "This merger enhances our ability to serve our clients
and community through a broader array of financial services and increased
lending capabilities. We will continue to operate under the name of Six Rivers
National Bank with a continued commitment to our clients and the communities we
serve."
North Valley Bancorp ("Company") is a multi-bank holding company
headquartered in Redding, California. Through its subsidiary banks, North Valley
Bank and Six Rivers National Bank, the Company serves its clients through
eighteen commercial banking offices in five Northern California counties. The
subsidiary banks offer a wide range of consumer and business deposit and cash
management products and services. In addition, the subsidiary banks engage in a
full complement of lending activities including consumer, commercial and real
estate loans, with particular emphasis on short and medium term loans. The banks
also provide installment loans through the Dealer Finance Division, have Small
Business Administration PLP/CLP lending status, and provide investment services
to customers through an affiliated relationship. North Valley Bancorp's
subsidiary, Bank Processing, Inc., provides contracted data processing services
to North Valley Bank and other non-affiliated Northern California community
banks, and will provide data processing services to Six Rivers National Bank
upon conversion during the fourth quarter of 2000.
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CAUTIONARY STATEMENT: This release contains certain forward-looking statements
that are subject to risks and uncertainties that could cause actual results to
differ materially from those stated herein. Management's assumptions and
projections are based on their anticipation of future events and actual
performance may differ materially from those projected. Risks and uncertainties
which could impact future financial performance include, among others, (a)
competitive pressures in the banking industry; (b) changes in the interest rate
environment; (c) general economic conditions, either nationally or regionally;
(d) changes in the regulatory environment; and (e) changes in business
conditions or the securities markets and inflation. Therefore, the information
set forth herein, together with other information contained in the periodic
reports filed by the company with the Securities and Exchange Commission, should
be carefully considered when evaluating the business prospects of the company.
North Valley Bancorp undertakes no obligation to update any forward-looking
statements contained in this release.
For further information contact:
Michael J. Cushman or Sharon L. Benson
President & Chief Executive Officer Senior Vice President and
NORTH VALLEY BANCORP Chief Financial Officer
880 E. Cypress Avenue NORTH VALLEY BANCORP
Redding, CA 96002
(530) 226-2900 Fax: (530) 221-4877
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