Valley Commerce Bancorp is the holding company of Valley Business Bank, with $416m in assets as of June 30, 2016.
Valley Business Bank operates in four locations such as Visalia, Tulare, Fresno, and Woodlake.
CVBF and Citizens Business Bank president and chief executive officer said Christopher Myer said: “Valley Business Bank is a strong community bank and an excellent strategic and geographic fit for Citizens. We look forward to welcoming their customers, associates, and shareholders.”
CVBF expects the merger to result in modest earnings accretion in 2017, excluding one-time transaction costs.
After the completion of the merger, Valley Business Bank will operate as Citizens Business Bank with an expanded branch and ATM network.
Its service will include personal, small business, private and corporate banking, as well as treasury management and trust services.
Valley Commerce Bancorp president and chief executive officer Allan Stone said: “Citizens Business Bank will expand upon our reach, our capabilities and our product offerings while continuing our commitment to providing excellent service to our business and consumer customers.
“Our shareholders will benefit from the opportunity to own CVBF’s NASDAQ-listed stock with 108 quarters of consecutive cash dividend payments. Based on our similar cultures, we are looking forward to a smooth transition.”
Following the merger, Valley Commerce Bancorp shareholders would hold, in aggregate, nearly 1.8% of CVBF’s outstanding common stock.
The transaction is subject to customary regulatory approvals and the approval of Valley Commerce Bancorp shareholders.
While Keefe, Bruyette, and Woods acted as financial advisor to CVBF on the transaction, Manatt, Phelps & Phillips served as legal counsel.
Headquartered in California, CVBF is the ninth largest bank holding company with assets of approximately $8.3bn.
Image: CVB Financial to merge Valley Commerce Bancorp. Photo: courtesy of adamr/FreeDigitalPhotos.net.
