Citizens Business Bank merges with Heritage Commerce

CVB Financial Corp., parent company of Citizens Business Bank, has finalized its merger with Heritage Commerce Corp., marking a significant expansion into Northern California. The all-stock transaction, valued at $811 million, increases CVB Financial's assets to over $20 billion, positioning it as one of California's leading bank holding companies.

The merger combines Citizens Business Bank with Heritage Bank of Commerce, enhancing Citizens’ geographical footprint with the addition of 16 Bay Area branches. The integration will result in a combined entity holding approximately $12 billion in loans and $17 billion in deposits and customer repurchase agreements. With this merger, Citizens expands its banking network to over 75 locations statewide, reinforcing its presence across all key business markets in California.

David Brager, CEO of Citizens Business Bank, emphasized the strategic nature of the deal, describing it as the largest by asset size in the bank’s history. It aligns with Citizens’ long-term strategy to establish a robust presence in the Bay Area's lucrative markets, leveraging the strengths of two relationship-centric, business-focused banks. The completion of the merger follows Citizens' strong financial performance, evidenced by a net income of $51 million in Q1 2026 and a stable net interest margin of 3.44%.

For competitors, this merger underscores a competitive shift in the California banking landscape. Companies in the sector might feel pressure to pursue similar expansionary strategies for market positioning. The merger exemplifies the trend of consolidation among regional banks as they seek to capitalize on synergies and broaden their service areas.

Clay Jones, the president and CEO of Heritage, will assume the role of president in the merged entity, joining the CVB Financial board alongside director Julianne Biagini-Komas. As the combined bank settles into its expanded operations, the focus will likely be on ensuring seamless integration and capturing the expected strategic benefits. The transaction’s completion took place on April 17, and the market will be watching closely for the merger's impact on competitive dynamics and operational efficiencies in the coming quarters.