CVB Financial Corp., the parent company of Citizens Business Bank, announced July 27 that it will be merging with and absorbing Suncrest Bank.
The deal is worth about $204 million, or $16.18 per Suncrest share. Through the merger, Citizens’ total assets will increase to about $17 billion, based on the most recent publicly available information for both Suncrest and CVB.
Citizens Business Bank is based in Ontario and has four branches in Ventura County and one in Santa Barbara.
Suncrest, which is based in Visalia, had approximately $1.3 billion in total assets, $900 million in gross loans and $1.2 billion in total deposits as of March 31. Suncrest has seven branch locations and two loan production offices throughout the Central Valley.
Through the agreement, each share of Suncrest common stock will receive consideration consisting of 0.697 shares of CVB Financial common stock and $2.69 in cash. CVB will pay aggregate consideration of about 8.5 million shares of CVB common stock and $39 million in cash. After the merger, Suncrest shareholders will hold about 6% of CVB’s common stock.
“As the second largest acquisition in our history, the acquisition of Suncrest will deliver important benefits to our combined customers through our increased presence in the Central Valley and expansion into Sacramento, a sizable and important new market for Citizens Business Bank that presents significant growth opportunities going forward,” CVB Financial CEO David A. Brager said in a press release.
The merger is expected to close in either the fourth quarter of 2021 or the first quarter of 2022.