CVB Financial Merges with Heritage Commerce for $811M

CVB Financial Corp. has finalized its merger with Heritage Commerce Corp., solidifying its position with a strengthened footprint in California's financial services landscape. The all-stock transaction, valued at $811 million, positions the parent company of Citizens Business Bank well beyond the $20 billion asset mark. This strategic move extends Citizens' presence into key metropolitan areas in California, including a significant expansion into the Bay Area through the addition of 16 branches previously held by Heritage Bank of Commerce.

According to the terms of the transaction, the merger was completed on April 17. As part of the agreement, Clay Jones, formerly President and CEO of San Jose-based Heritage, assumes the role of President at the newly expanded Citizens Business Bank. Additionally, Jones will join the CVB Financial board alongside Julianne Biagini-Komas, broadening the board from nine to eleven members. This merger increases the combined entity’s portfolio to approximately $12 billion in total loans and about $17 billion in deposits and customer repurchase agreements.

CVB Financial identified this merger as the most significant acquisition in its history due to both asset size and strategic import. CEO David Brager highlighted the merger's role in achieving the company’s long-term goal of expanding in the Bay Area, merging two business-focused banks to enhance their relationship-driven banking model. The merger reinforces Citizens Business Bank’s presence, adding geographic coverage and potentially increasing its share in California’s competitive banking market.

The completion of this merger comes as CVB Financial maintains robust financial health, with net earnings of $51 million recorded in the first quarter of 2026. The company continues to report one of the lowest nonperforming asset ratios among its peers, at 0.04%. This stability underpins Citizens’ expansion strategy, targeting growth in sectors like agricultural lending, where it remains a significant player in regions such as the Central Valley.

Looking ahead, the enlarged institution must navigate the integration process, ensuring seamless service continuity for its expanded customer base. The merger also places CVB Financial among the top ten bank holding companies in California, a status that could influence competitive dynamics across the region’s banking sector. Meeting regulatory requirements and aligning operations will be critical as CVB Financial leverages its broadened market reach to drive further growth.