Pasadena’s Community Bank to be Purchased by Citizens Business Bank Holding Company for $878 Million

Published : Tuesday, February 27, 2018 | 10:51 AM

Community-Bank

Pasadena’s Community Bank is set to merge with CVB Financial Corp., the holding company for Citizens Business Bank, after an $878.3 million deal between the two institutions was announced yesterday.

Once the merger is complete, the combined bank will operate as Citizens Business Bank and will have an expanded branch and ATM network along with a broader range of products and services. The transaction is expected to close in the third quarter of 2018 and is subject to regulatory approvals and the approval of CVBF and Community shareholders.

CVB Financial has agreed to pay $177.5 million in cash, plus the equivalent of 30 million shares of CVBF common stock to Community Bank shareholders. Each share would be purchased with 9.46 shares of CVBF common stock, giving Community Bank shareholders collectively a 21 percent stake in CVBF.

CVB Financial CEO Christopher D. Myers said of the merger, “We are excited to be merging with a successful business bank that has been built customer by customer for the past 74 years. Our combination with Community Bank provides us tremendous financial opportunity in terms of depth of talent, a strong and diverse customer base, and significant geographic overlap. We have truly admired this franchise for a long time. The reality of blending our two teams is very exciting.”

Community Bank CEO David Misch shares Myers’ sentiment: “We are delighted to be joining forces with an organization that so strongly complements and builds upon Community Bank’s long-standing tradition of customer, employee and community focus.”

As of the end of 2017, Community Bank had approximately $3.7 billion in total assets, $2.7 billion in gross loans and $2.9 billion in total deposits with sixteen branches throughout Los Angeles and Orange County.

Headquartered in Ontario, CVB Financial is the ninth largest bank holding company with assets of $8.3 billion. Its main subsidiary, Citizens Business Bank, has 51 branches and three trust offices serving the Inland Empire, Los Angeles, Orange, San Diego, Ventura and Santa Barbara Counties, as well as portions of the Central Valley.

Citizens Business Bank offers a wide range of banking, lending and investing services through 51 banking centers and three trust office locations, serving the Inland Empire, Los Angeles County, Orange County, San Diego County, Ventura County, Santa Barbara County and the Central Valley area of California.

Morrison & Foerster is advising CVB Financial Corp. in the transaction. The MoFo team advising CVBF is led by Los Angeles senior counsel Henry Fields and of counsel Ben Chung, and includes San Diego partner Shane Shelley, San Francisco of counsel Amanda Hines Gold and Los Angeles associates Phillip Kim and Clara Lim.

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