fbpx
suncrest bank

Suncrest Bank plans to close its main branch in Visalia. Suncrest Bank file photo

published on July 27, 2021 - 4:34 PM
Written by

Two of the Central Valley’s largest banks have agreed to join forces in a deal worth $204 million.

Visalia-based Suncrest Bank will merge into Ontario, California-based CVB Financial Corp., parent company of Citizens Business Bank, in a deal worth $204 million, according to an agreement announced Tuesday afternoon.

The deal is expected to close by the fourth quarter of this year or first quarter of 2022 and would increase Citizen Business Bank’s total assets to about $17 billion.

Suncrest had about $1.3 billion in total assets as of March 31, with seven branch locations and two loan production offices in the Central Valley. CVB Financial Corp. is one of the 10 largest bank holding companies headquartered in California with more than $15 billion in total assets. It has 58 banking centers and three trust office locations in Southern California and the Central Valley.

Ranked by The Business Journal’s latest “Financial Institutions” list reflecting June 2020 Federal Deposit Insurance Corp. data, Citizens Business Bank came in at No. 11 with 2.83% market share in Fresno, Kings, Madera and Tulare counties. Suncrest Bank had 2.71% market share.

The two banks’ combined Central Valley market share would be 5.54%, placing it between Bank of the Sierra at No. 6 on the list (6.13% share) and Central Valley Community Bank at No. 7 (4.44% share).

David A. Brager, CEO of CVB Financial Corp. and Citizens Business Bank, stated, “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. On behalf of all of us at Citizens Business Bank, I want to welcome Suncrest Bank’s talented employees and loyal customers. We look forward to a swift closing and smooth integration.”

Ciaran McMullan, president and CEO of Suncrest Bank, commented, “I couldn’t be more proud of the Suncrest team and what we have achieved together. This merger is a testament to the hard work of our employees in providing exceptional products and services to our customers. Citizens Business Bank is one of the top performing banks in the country and this combination rewards our shareholders, creates opportunities for our employees and expands the resources available to our customers.”

Pursuant to the agreement, at closing each share of Suncrest common stock will receive consideration consisting of 0.6970 shares of CVB Financial Corp. common stock and $2.69 per share in cash. CVB Financial Corp. will pay aggregate consideration of approximately 8.5 million shares of CVB Financial Corp. common stock and $39.0 million in cash, subject to purchase price adjustment provisions and other terms set forth in the agreement.

Giving effect to the merger, Suncrest shareholders would hold, in aggregate, approximately 6% of CVB Financial Corp.’s outstanding common stock following the merger.

Upon completion of the merger, Suncrest’s operations will be combined with Citizens Business Bank and will continue to deliver the high-touch level of service that its customers expect, with an expanded branch and ATM network and a broad range of products and services, including expertise in personal, small business, private and corporate banking, as well as treasury management and trust services, according to a news release.

The boards of directors of Suncrest, CVB Financial Corp. and Citizens have unanimously approved the proposed merger. The closing of the merger is subject to customary regulatory approvals, satisfaction of certain closing conditions and the approval of Suncrest shareholders. Directors, officers and certain shareholders holding 23.4% of the shares of Suncrest Bank have signed an agreement to vote their shares in favor of the proposed transaction with CVB Financial Corp.


e-Newsletter Signup

Our Weekly Poll

Do you think Valley Children's Hospital will lose financial support due to CEO pay revelations?
81 votes

Central Valley Biz Blogs

. . .