CVB Financial Corp., the holding company for Citizens Business Bank, and Suncrest Bank announced they have entered into an agreement and plan of reorganization and merger, pursuant to which Suncrest will merge with and into Citizens in a stock and cash transaction valued at approximately $204 million in aggregate. The merger will increase Citizens’ total assets to approximately $17 billion on a pro forma basis.
CVB Financial Corp. expects the merger to result in approximately 3.5 percent earnings per share accretion in 2023, excluding onetime transaction costs and assuming full realization of cost savings.
Suncrest Bank, headquartered in Visalia, CA, 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 California’s Central Valley.
David A. Brager, Chief Executive Officer of CVB Financial Corp. and Citizens Business Bank, said, “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 Chief Executive Officer of Suncrest Bank, said, “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.”
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.
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, and is anticipated to occur in the fourth quarter of 2021 or first quarter of 2022. Directors, officers and certain shareholders holding 23.4 percent of the shares of Suncrest Bank have signed an agreement to vote their shares in favor of the proposed transaction with CVB Financial Corp.
Piper Sandler & Co. served as financial advisor and Manatt, Phelps & Phillips, LLP served as legal counsel to CVB Financial Corp. MJC Partners, LLC served as financial advisor and Sheppard, Mullin, Richter & Hampton served as legal counsel to Suncrest.