North Valley Bancorp Acquires Yolo Bank

Business

April 26, 2004
North Valley acquires Yolo Bank

By Matthew Bunk

FAIRFIELD -- Yolo Community Bank, with locations in Roseville, Fairfield and Woodland, will be acquired by North Valley Bancorp, the companies announced April 26.

Privately-hold Yolo Community Bank will keep its name under the agreement and will become a subsidiary of North Valley Bancorp, a company with assets of $730 million.

Yolo Community Bank shareholders will receive $9.5 million in cash and 741,000 shares of North Valley Bancorp's common stock. The deal was valued at $23.4 million for the $105 million Yolo Community Bank.

North Valley's stock was valued at $17.09 a share before the deal was announced. It closed Friday at $16.83.

The company will operate 23 branches with $835 million in assets.

Directors for both companies unanimously approved the deal, which is expected to close in the third quarter of this year, North Valley Bancorp said.

John DiMichele, president and CEO of Yolo Community Bank, will continue in those roles and will become vice president of the Yolo Community Bank holding company, said Mark Day, of Yolo Community Bank. DiMichele said being taken over was not part of the company's original plan.

"Although this is a departure from our original vision of staying independent, we are very excited about this new partnership," DiMichele said.

North Valley Bancorp wanted to open a branch office in Woodland, and this works out better, said Michael Cushman, company president and CEO.

"This partnership is a wonderful opportunity to gain entry into two key markets in addition to Woodland," Cushman said, "and avoid the dilutive affect of a de novo branch."

Reach Matthew Bunk at 425-4646 Ext. 267 or mbunk@dailyrepublic.net.