Western Sierra Bancorp & MVB Form Alliance
-May 20, 2018--Western Sierra Bancorp (Nasdaq:WSBA), a multi-bank holding company headquartered in Cameron Park and MVB (OTCBB:MIVB), headquartered in Red Bluff have signed a definitive agreement forming a new alliance whereby MVB will become a separate subsidiary and the fourth bank charter under Western Sierra Bancorp's umbrella. The agreement, which is valued at approximately $22 million, is expected to be completed in the fourth quarter of this year.
MVB, with $170 million in assets, presently has five locations in the Northern California communities of Red Bluff, Redding, Corning and Chico. The bank will remain independently operated with John Dickerson, President & CEO, and Joan Blocker, EVP & Chief Operating Officer, continuing to lead their team of professional bankers. MVB's Directors have also committed to continue in their role of governance and community support.
"This is an extremely positive event for MVB's customers, shareholders and employees," stated Dickerson. "The increased capacity, enhanced financial services and expanded resources that accrue from this partnership will make us an even more formidable competitor in our local markets. Western Sierra's strong emphasis on responsive customer service closely mirrors our own business philosophy and adds great synergy to this combination."
Gary D. Gall, President & CEO of Western Sierra Bancorp stated, " We are pleased to form this alliance with another community bank that has built strong customer relationships and has a long history and deep roots in its local communities. Their business philosophy of community support and building personal relationships can now be enhanced with our expanded line of financial services."
This will be the fifth strategic alliance for Western Sierra Bancorp since 1999. When completed, the Western Sierra alliance of financial institutions will serve its customers from 28 locations in 13 northern and central California counties. Total assets of the combined group will exceed $770 million. It is expected that this transaction will be accretive to earnings in the first full quarter of operation together.
MVB shareholders will be receiving approximately $22 million in stock and cash. The transaction will need regulatory as well as MVB shareholder approval, which is expected in the third quarter of this year. More information about these banks can be found on their websites at www.westernsierrabancorp.com and www.midvalleybank.com.
This press release contains statements which constitute forward - looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risk and uncertainties. Actual results may differ materially from the results in these forward - looking statements. Factors that might cause such a difference include, among other things, fluctuations in interest rates, changes in economic conditions or governmental regulation, credit quality and other factors discussed in the Company's Annual Report on form 10-K for the year ended December 31, 2018.