Pursuant to the terms of the agreement and plan of merger, either party had the right to terminate the merger agreement if the proposed merger was not consummated by November 30, 2007.
The terms of the merger agreement had been approved by the board of directors of each company, and had also been approved by the shareholders of North Valley. The pending merger remained subject to regulatory approval and satisfaction of other customary closing conditions.
In October, Sterling has revised its expectations regarding the expected closing date of the proposed merger because the Federal Deposit Insurance Corporation had informed Sterling that the FDIC could not advise when or if the pending application to merge Sterling Savings Bank with North Valley Bank would be approved.
Harold Gilkey, chairman and CEO of Sterling, stated: We had hoped to complete this transaction, but we recognize that the delay in receiving requisite regulatory approval created challenges for North Valley’s ability to plan for the future and we understand their need to be able to give their stakeholders guidance with regard to expectations for day-to-day operations. It is disappointing that specific assurances regarding the timing of regulatory approval are not currently available.
