CVB Financial Completes $20B All-Stock Merger with Heritage Commerce, Adding 16 Bay Area Branches

CVB Financial Corp. successfully completed its all-stock acquisition of Heritage Commerce Corp. This strategic move merges Heritage Commerce into CVBF and Heritage Bank of Commerce into Citizens Business Bank. An all-stock merger uses the acquiring company's shares as payment for the target company, rather than cash. This structure means existing CVBF shareholders experience some share dilution due to the issuance of new shares.

Heritage shareholders received 0.65 CVBF shares for each share they previously held in Heritage Commerce. This exchange resulted in the issuance of approximately 41 million new CVBF common shares. Post-merger, the combined financial institution now manages over $20 billion in total assets. It holds roughly $12 billion in loans and $17 billion in deposits plus customer repurchase agreements. This transaction also adds 16 new Bay Area branches to Citizens Business Bank’s existing network across California.

Leadership adjustments accompany the merger. Clay Jones, the former CEO of Heritage Commerce, now serves as President for both CVBF and Citizens Business Bank. His compensation package includes a $700,000 base salary, a $1.8 million retention award, and additional equity grants. This integration of key leadership aims to facilitate a smoother transition for the combined operations.

This acquisition marks a significant expansion for CVB Financial, materially boosting its scale and regional presence across California. The increased asset base provides the bank with greater capacity for lending and deposit-taking in a competitive market. The addition of 16 Bay Area branches extends Citizens Business Bank's reach into a key economic region, enhancing its business banking franchise. Market participants will observe upcoming financial disclosures for data on integration effectiveness and the combined entity's performance metrics.