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The California company ended three years of loan runoff after expanding into San Diego and adding managers for its agribusiness, construction and mortgage operations. What it would really like to do next is find the perfect acquisition.
February 14
CVB Financial (CVBF) in Ontario, Calif., has agreed to buy America Bancshares in Newport Beach, Calif.
CVB said in a press release Tuesday that it will pay $57 million in cash for America Bancshares, or 133% of the seller's tangible book value. Last week, the $6.7 billion-asset CVB
America Bancshares has $412 million in assets $253 million in loans, $356 million in deposits. CVB said it expects it complete the acquisition in the second or third quarter.
"We believe American Security Bank and its strong team of associates is a terrific fit," Christopher Myers, CVB's president and chief executive, said in the release. "Both organizations share a common philosophy and approach to community banking with an emphasis on serving the financial needs of small-to-medium sized business customers and owners."
Excluding one-time costs, CVB said it expects the transaction to be accretive to earnings per share. CVB also said that it expects the acquisition to result in roughly 3.6% dilution to tangible book value per share at closing, adding that it should take less than four years to earn back the dilution.
Sandler O'Neill and Manatt, Phelps & Phillips advised CVB. Hovde Group and Pillsbury Winthrop Shaw Pittman advised America Bancshares.
