CVB Financial completed the previously announced merger of its wholly-owned subsidiary, Citizens Business Bank, with Suncrest Bank.
Suncrest Bank was merged with and into Citizens Business Bank in accordance with the terms and conditions of the merger agreement signed in July 2021 in a stock and cash transaction valued at approximately $237 million in aggregate, or $18.63 per Suncrest Bank share based on CVB Financial’s closing stock price of $22.87 on Jan. 7.
Under the terms of the merger agreement, CVB Financial issued approximately 8.6 million shares of its common stock and approximately $39.6 million in aggregate cash consideration, including cash paid out in settlement of outstanding incentive stock option awards at Suncrest Bank.
“We would like to welcome Suncrest Bank’s customers, associates and shareholders to Citizens Business Bank and CVB Financial Corp. This merger is an exciting opportunity for Citizens Business Bank to expand our presence northward to the Sacramento area and to bolster our already strong position in the important Central Valley region of California. We look forward to building on the strong customer and community relationships established by Suncrest Bank with our expanded branch network and wider array of products and services,” David Brager, president and CEO of CVB Financial and Citizens Business Bank, said.
Suncrest Bank, headquartered in Visalia, CA, had approximately $1.4 billion in total assets, $800 million in net loans, $1.2 billion in total deposits and $179 million in total equity as of Dec. 31, 2021. Tangible book value per share was $11.16 at Dec. 31, 2021. Suncrest Bank’s seven branch locations and two loan production offices in California’s Central Valley and the Sacramento, CA, area will open as Citizens Business Bank locations today.
