Citizens Business Bank to Expand After $811M Merger with Heritage Commerce
CVB Financial Corp. and Heritage Commerce Corp. have announced plans to merge, creating a larger financial institution under the name Citizens Business Bank. The deal, valued at roughly $811 million, will see the combined company manage approximately $22 billion in assets and maintain over 75 branches and offices across key economic regions in California, expanding its market reach and business operations. The merger is expected to boost Citizens' earnings per share immediately and by 13.2% by 2027. The transaction is scheduled to close in the second quarter of 2026, pending necessary approvals from shareholders and regulators. Once completed, the merger will create a stronger banking presence in California's major markets, with an expanded assets base, a broader branch network, and a leadership team drawing from both institutions. The merger sets the transaction at $13.00 per share of Heritage Commerce Corp. (HTBK), with CVB Financial Corp. (CVBF) shareholders holding about 77% of the new entity and HTBK shareholders owning around 23%. Leadership roles have also been outlined, with David A. Brager, current CEO of Citizens, continuing in his position, and Clay Jones, CEO of Heritage, joining as President of the merged organization. Additionally, two directors from Heritage’s board will take seats on Citizens’ Board of Directors. Financially, the merger is projected to boost Citizens’ earnings per share immediately and by 13.2% by 2027. While tangible book value per share may initially drop by 7.7%, analysts expect a full recovery within about 2.5 years, factoring in interest rate adjustments. Without these adjustments, the deal would still strengthen tangible book value per share.
