CVB Financial Corp. is expanding in the Bay Area by acquiring Heritage Commerce Corp. for $811 million, the companies announced Dec. 17..The deal is expected to close in the second quarter of next year. CVB Financial Corp. is the parent company of the more than $15 billion Citizens Business Bank, which is headquartered in Ontario, Calif., part of Greater Los Angeles. Heritage Commerce Corp. is the holding company of $5.6 billion, San Jose-based Heritage Bank of Commerce. The combination is expected to create one of California’s largest business-focused banks, with approximately $22 billion in assets and more than 75 branches statewide.Citizens President and CEO David Brager called the acquisition the largest and most strategic transaction in the company’s history, providing comprehensive coverage across California’s major business banking markets while preserving a relationship-based banking model.Following the transaction, CVB Financial shareholders will own 77 percent of the combined company, with Heritage shareholders owning 23 percent. Brager will remain CEO of Citizens Business Bank. Heritage President and CEO Clay Jones will join the combined organization as president. Two Heritage directors will also join the Citizens' board.New York City-based J.P. Morgan and Los Angeles-based Manatt, Phelps & Phillips advised Citizens on the transaction, while Minneapolis-based Piper Sandler and New York-based Wachtell, Lipton, Rosen & Katz advised Heritage.
