Suncrest reopens as Citizens Bank

Citizens Business Bank completes its $237 million acquisition of Suncrest Bank expanding both to 60 locations in Central, Sacramento valleys and Southern California

VISALIA – Suncrest Bank, a familiar sign in Visalia and Porterville, is now officially called Citizens Business Bank.

On Monday, Jan. 10, the Visalia-based bank’s seven branches and two loan offices in the Valley and Sacramento reopened as Citizens Business Bank locations following a major merger between two of the Valley’s fastest growing banks. Citizens Business Bank, which already had locations in Visalia and Tulare, now has a total of 57 banking locations and five offices throughout the Valley and Southern California.

Ontario-based CVB Financial Corp., the parent company for Citizens Business Bank, completed its acquisition of Suncrest Bank as of 6 p.m. on Jan. 7, 2022. The deal, originally announced on July 27, 2021. is worth approximately $237 million in aggregate, or $18.63 per Suncrest share based on CVB Financial Corp.’s closing stock price of $22.87 on Jan. 7. Tangible book value per share was $11.16 at Dec. 31, 2021.

Under the terms of the Merger Agreement, Citizens issued approximately 8.6 million shares of CVB Financial Corp. 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.

“We would like to welcome Suncrest Bank’s customers, associates and shareholders to Citizens Business Bank and CVB Financial Corp,” Citizens Bank president and CEO David Brager said. “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.”

The merger increased Citizens’ total assets to approximately $17 billion on a pro forma basis based on the most recent publicly available information for Suncrest and CVB Financial Corp. Citizens CEO David Brager said the acquisition was the second largest in CVB Financial’s history and would deliver important benefits to the combined customers. He said the increased presence in the Valley and expansion into Sacramento, should bring significant growth opportunities for both banks.

Suncrest Bank, headquartered in Visalia, California, had approximately $1.4 billion in total assets, $0.8 billion in net loans and $1.2 billion in total deposits as of Dec. 31, 2021. Suncrest has seven branch locations and two loan production offices throughout California’s Central Valley.

According to the Business Journal, Citizens Business Bank had a 2.83% market share in Fresno, Kings, Madera and Tulare counties while Suncrest had a 2.71% market share.

Combined, the new bank’s market share would be 5.54%, just behind Porterville-based Bank of the Sierra (6.13% share) and just above Fresno-based Central Valley Community Bank (4.44% share), ranked Nos. 6 and 7 in the Valley, respectively.

CVB Financial Corp. trades under the ticker symbol CVBF on the Nasdaq.

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