BusinessCONNECTIONExclusively for Tri Counties Bank Corporate and Business Clients

24-hour banking 800.922.8742 | www.tricountiesbank.com

INSIDE THIS ISSUE:2 | Protecting your small business from cyberattacks 3 | Create a road map to reach financial independence3 | Make sure you’re insured for growth

FALL 2014

BETTER TOGETHER: TRI COUNTIES BANK AND NORTH VALLEY BANK MERGER UPDATE

MORE CONVENIENCEWith 73 branch locations, customers will have greater convenience with the same or more locations in every city the two banks currently serve from the Oregon border to Bakersfield.

MORE TECHNOLOGYWith greater cost efficiencies resulting from the merger, the bank will be able to invest more into the latest technologies that enhance banking access through online, mobile banking and business cash management services.

MORE CAPABILITIESThe combination of bank assets will also allow for more financial offerings and increased business and consumer lending capacity even while increasing the financial strength and stability from the resulting Northern California based bank with assets of nearly $4 billion.

Most important, customers can expect the same friendly service and local decision-making they’ve always enjoyed with experienced, knowledgeable, can-do bankers committed to making good things happen.

Michael J. Cushman, President & CEO, North Valley Bancorp commented, “This is the perfect opportunity for our banks to unite in the market to create a superior financial institution. We’ll be in a position to compete more effectively in an evolving financial services arena, providing the level of personalized service customers expect. The combined company should provide expanded opportunities for our employees as well as expanded resources for our customers.”

Completion of the merger, which provides for North Valley Bancorp to merge into TriCo Bancshares, is expected in the fourth quarter of 2014.

TriCo Bancshares and North Valley Bancorp, the holding companies of Tri Counties Bank and North Valley Bank, were pleased to announce that their respective shareholders voted overwhelmingly to approve the companies’ Agreement and Plan of Merger and Reorganization previously announced

on January 21, 2014.

Richard P. Smith, President & CEO, TriCo Bancshares commented, “This is a winning combination. Both banks are highly respected for their superior customer service and strong commitments to their communities. Together we are even better.”

The goal is to build an organization that offers more than the sum of its parts.

Business Connection | Fall 2014

PROTECTING YOUR SMALL BUSINESS FROM CYBERATTACKS

Large corporations make the news on a regular basis for being victims of cyberattacks. But small businesses are equally at risk. Cybercriminals and hackers know that small businesses often have less security, making them more vulnerable to attacks.

BE PROACTIVE ABOUT SECURITYWhile there is no replacement for an IT security expert assessing your business’ specific weaknesses, there are some preventive steps that can help small businesses protect themselves from cybercriminals looking to steal money and confidential data.

1. Develop a security plan. This means encrypting laptop drives; creating a password policy that requires employees to update passwords every 90 days and use a combination of upper- and lower-case letters, numbers and symbols; and setting business mobile devices to have a password and lock automatically when unused for a certain length of time.

2. Educate employees. Employees are your first line of defense against cybercriminals, but they can also be a weakness if they are not trained properly. Before giving employees access to confidential data, be sure they know your business’ security policies, how to recognize potential threats and what to do when a threat presents itself.

3. Install anti-malware software and firewalls. Invest in a firewall and business-class, anti-malware software to protect your business’s PCs, servers and mobile devices from network intrusions. Perform regular tests and scan for viruses that could be stealing sensitive data.

4. Designate a banking-only computer. This computer can be used exclusively for financial transactions — no social media, email or surfing the web. Keeping banking on a separate computer will make it much more difficult for outsiders to gain access to sensitive information.

5. Insure your business. No matter how careful you may be, security breaches happen. As a last line of defense, consider purchasing an insurance policy that protects you against any losses you may incur as a result of cybercrime.

No security is completely unbreakable, but the better prepared you are to respond to and deal with a cyberattack, the safer your business will be.

WE WORK TO PROTECT YOUTri Counties Bank uses advanced technology and carefully thought-out policies and procedures to help prevent security breaches and protect your business’s confidential information.

BUSINESS SEMINAR SCHEDULE

TITLE DATE LOCATION

How to Use QuickBooks Accounting Software Oct. 9, 2014 Roseville

How to Use QuickBooks Accounting Software Oct. 23, 2014 Redding

Financial Management for the Closely Held Business Oct. 28-29, 2014 Grass Valley

Financial Management for the Closely Held Business Nov. 4-5, 2014 Redding

TRI COUNTIES BANK BUSINESS SEMINARS

Tri Counties Bank hosts a variety of Business Seminars that focus on topics that can help your business grow, plan for the future and make the financial decisions necessary for success. To see the latest schedule and availability, go to www.tcbk.com/business/seminars.

What would it take for you to feel financially confident … Having debt under control? Building a substantial savings account for emergencies? Implementing a solid investment strategy for your retirement nest egg?

Feeling financially confident can improve your life in many ways. It may allow you to enjoy more rewarding personal relationships with family and friends. But how do you get there? In today’s complicated financial world it often seems easier said than done. Mapping it out with these four steps can help.

1. Find your starting point. With any goal, you need to know where you are before you can plot a course to where you want to be. Start with a close examination of your present situation by:

❙ Tracking your monthly income and expenses to see how money comes and goes in your home. ❙ Calculating your net worth. Make a detailed list of the value of all

your assets and debts. Subtract your liabilities (what you owe) from your assets (what you own) to arrive at your net worth.

2. Set your destination. Now that you know where you are, figure out where you want to go. The more specific you can be the better. You’ll have multiple goals, and you should assign a price tag and timeline to each one. For instance, you may want an emergency fund of $5,000 in two years, $50,000 for college costs in 10 years or $250,000 in retirement savings in 25 years.

3. Be prepared for detours. Life comes with no guarantees. If you or your spouse were to suffer a significant illness or injury, job loss or premature death, your financial confidence could be lost — unless you planned ahead. Take steps to plan for road hazards. Proactively establishing an emergency fund and adding disability insurance and life insurance can help keep you on track if the unexpected happens.

CREATE A ROAD MAP TO REACH FINANCIAL INDEPENDENCE

800.922.8742 | www.tricountiesbank.com

4. Be open to new roads. Changes in your life, family or career will all trigger adjustments to your finances. New laws and regulations may, too. As priorities shift, new opportunities can arise and established practices may fall by the wayside. Your plan for your finances should include built-in flexibility to meet life’s evolving needs to help ensure you’re always prepared.

WE’LL BE YOUR GPSThe investment team at Tri Counties Bank can help you get on your way to taking control of your financial future. We’d be happy to help you map out a plan to meet your goals. Call 866-822-4753 for a no-cost consultation.

Securities are offered through Raymond James Financial Services, Inc. Member FINRA/SIPC, an independent broker/dealer, and are:• Not insured by bank insurance• Not insured by FDIC or any other government agency• Not deposits or obligations of the bank• Not guaranteed by the bank• Subject to risks, including the possible loss of principal.

Tri Counties Bank (TCB) and TCB Investment Services are independent of Raymond James.OSJ: 780 Manrove Ave Chico, Ca 95926 P: 866-822-4753

MAKE SURE YOU’RE INSURED FOR GROWTH

companies with fewer than 250 employees.* All it takes is a single stolen laptop or computer virus to jeopardize your technology security and leave you vulnerable to claims. If your BOP doesn’t cover cyberattacks, consider adding it in.

“Many owners of small to medium-sized businesses just don’t think they’ll be attacked by hackers and dismiss the need for cyber-risk insurance,” says Michael Farris, property and casualty broker, InterWest Insurance Services, Inc. “In our experience, we’ve seen a number of fraudulent funds transfers where rural Northern California businesses’ computer systems were breached, resulting in the hackers perpetrating a series of fraudulent funds transfers from the business’ bank account. Under the Uniform Commercial Code, the business whose computer system was compromised is responsible for this loss, not the bank. Without a cyber-risk policy, a business would likely not have any coverage for this loss.”

“If that’s not enough, according to many recent studies, the ‘human factor’ is a close second to malicious attacks in being the root cause of a cyber-related loss or data breach,” Farris continues. “In addition to the

Small businesses should enjoy improved sales and profits in 2014 and the best growth prospects since 2007, according to Kiplinger, a Washington, D.C.-based publisher of business forecasts.

As your business grows, it’s important to make sure your insurance keeps pace with your current and future needs. Just as you plan other parts of your business, like finance and marketing, regularly review your insurance needs with your agent, especially around the following topics:

Business owner’s policy (BOP) — A BOP is a broad-based policy covering a variety of potential losses, including property damage (building, equipment and inventory), income (due to a covered loss) and liability (when your employees, products or services cause harm to other people or their property). As you add staff, space or equipment, you’ll want to be sure your BOP coverage stays current.

Cyber liability — Although cyberattacks against large retailers get the headlines, small businesses are not immune. According to Symantec’s 2014 Threat Report, 30 percent of all cyber “phishing” attacks target ... continued on page 4

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statistics on criminal attacks, the human factor numbers should make business owners pause to consider the need for cyber-risk insurance; it’s a coverage that we recommend every business consider.”

“We do caution that cyber insurance is not written on a common form across the insurance industry. Because of that, simply comparing the premiums between one quote and another is pointless without understanding the specific coverages each policy provides. Working with an insurance broker who will provide a comparative summary on how the differing policies meet your business’ exposures is key to being able to make a good decision regarding the purchase of cyber-risk insurance for your business,” Farris says.

Professional liability — You may think of liability coverage primarily as protection against accidents, injuries or claims of negligence, but if your business provides services, you are also at risk for claims based on service errors or negligence.

Employment practices liability — This coverage helps protect you against employment-related claims, such as if a disgruntled

ex-employee or the Equal Employment Opportunity Commission (EEOC) pursues your company for discrimination or harassment. Employment practice claims have increased dramatically. For instance, the EEOC collected a record $372.1 million in 2013 for victims of private sector workplace discrimination.**

Covered loss coverage — If your business experiences a loss, what is the extent of your insurance? Many small business owners do not know their coverage specifics — and may face an unpleasant surprise if they need to make a claim. For instance, what about coverage for pricey new equipment that gets damaged, or the cost of removing debris after a loss? Up to 25 percent of businesses that experience a disaster never open their doors again, according to the Insurance Information Institute.***

CONSULT WITH YOUR AGENT A quality insurance carrier and agent will proactively help you determine your company’s risk management. It’s in your agent’s best interests to make sure your business succeeds, based on proper insurance coverage.

* Source: Internet Security Threat Report, 2014, www.symantec.com.** Source: Equal Employment Opportunity Commission press release, Dec. 16, 2013.

*** Source: Insurance Information Institute press release, Oct. 3, 2013.

MAKE SURE YOU’RE INSURED FOR GROWTH... continued from page 3