CVB adding scale in Southern California with deal for Pasadena bank
CVB Financial in Ontario, Calif., has agreed to buy Community Bank in Pasadena, Calif.
The $8.3 billion-asset CVB said in a press release late Monday that it will pay $878.3 million in cash and stock for the $3.7 billion-asset Community Bank. The deal is expected to close in the third quarter.
Community Bank has 16 branches, $2.7 billion in loans and $2.9 billion in deposits.
CVB said it expects the deal to be about 12% accretive to its 2019 earnings per share, excluding merger-related expenses. It should take about five years to earn back the acquisition’s expected 11% dilution to CVB’s tangible book value.
Marshall Laitsch, Community Bank’s chairman, will join CVB’s board.
“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,” Christopher Myers, CVB’s president and CEO, said in the release. “We have truly admired this franchise for a long time.”
Keefe, Bruyette & Woods and Morrison & Foerster advised CVB. D.A. Davidson and Manatt, Phelps & Phillips advised Community Bank.