CVB Financial Corp, the parent company of Citizens Business Bank, and Heritage Commerce Corp, the parent company of Heritage Bank of Commerce, have entered into a definitive merger agreement through which Heritage will merge with and into Citizens in an all-stock transaction valued at approximately $811 million.
Under the terms of the agreement, CVB Financial shareholders will own about 77% of the combined company, while Heritage Commerce shareholders will hold the remaining 23%.
Founded in 1994, Heritage specialises in commercial and small business banking services and operates throughout the Bay Area of California.
David Brager, the current CEO of CVB Financial, will continue as CEO of the merged entity, which will manage around $22 billion in combined assets. Clay Jones, CEO of Heritage Commerce, will become president of the combined organisation, and two Heritage board members will also join the CVB board of directors.
“This will be the most strategic and the largest acquisition by assets in our history,” comments Brager, adding that the deal “provides Citizens with an important opportunity to expand into the Bay Area, a key strategic objective”.
Brager adds that the deal “will provide us with comprehensive geographic coverage of all the major business banking markets in California”.
The boards of directors of both companies have unanimously approved the merger, which is expected to close in Q2 2026, pending regulatory and shareholder approvals.
Source: https://www.fintechfutures.com/
